Traders Tax Report

Note: This report is only available in New Zealand tax residency portfolios on Expert and Sharesight Pro plans.

The Traders Capital Gains Report in Sharesight calculates taxable gains for individuals who hold shares on revenue account (i.e. they are classified as traders by the IRD). The report may be run over any date range.

How to run the Traders Tax Report:

1 – Click on the date range to select the period to run the report in.

2 – If you have any carry forward losses from the previous reporting period, click ‘Advanced Options’.

Note: Sharesight does not automatically account for any capital losses in previous tax years. Capital losses to be carried forward must be accounted for manually. The carry forward amount is not saved and must be re-entered if you rerun the report.

3 – Type in the amount of the loss into the ‘Losses carried forward’ field.

4 – Click ‘Apply’.

5 – The sale allocation method may be changed, default is First In, First Out. To change; click on ‘Change sale allocation method’.

6 – From the dropdown list, select the sale allocation method, this can be chosen at the portfolio level or individual holding.

Note: You must ensure the same method is used throughout the period of ownership of a particular holding. If you switch to a different method, the number provided by the report will not be correct for tax purposes. This means that if you record existing shareholdings into Sharesight you must select the same sale allocation method as used previously if partial sales of that shareholding have occurred.

Sale allocation methods available:

• First in, first out (default method) – Sharesight assumes that you sell your longest held shares first.

• Last in, First out – Sharesight assumes that you sell your most recently purchased shares first.

• Minimise capital gain – Sharesight assumes that you sell shares with the highest purchase price first.

• Maximise capital gain – Sharesight assumes that you sell shares with the lowest purchase price first.

7 – Click the ‘Update current report’ button.

8 – Capital Gains and losses This table lists any capital gains and losses during the selected period.

Note: Quantities and cost bases will be adjusted by Sharesight to allow for any capital returns and capital reconstructions.

9 – Summary The summary section details the calculations and what the taxable gain or loss is.

• Net Gain from Sales – This is the sum of all gains and losses from the table above.

• Gains from Capital Returns – Returns of capital give rise to a capital gain where the amount of the capital returned exceeds the cost base of the share, or where the shares to which the return of capital relates are sold before the return of capital is received. In either of these cases the return of capital is added to the net gain from sales figure.

Last modified on June 8, 2023 UTC