Traders Tax ReportContent also available for tax entities or on our global site.
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 (ie they are classified as traders by the IRD). The report may be run over any date range.
Sale allocation method
Before you run the capital gains report for the first time, you must set the sale allocation method. You can do this on a per share basis but you must ensure the same method is used throughout the period of ownership of a particular share. 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.
Step 1 – Click the ‘Change Sale Allocation Method’ button:
Step 2 – Select your preferred Sale Allocation Method and click ‘Update Current Report’:
Sharesight allows you to select of the following sale allocation methods:
- First in, first out (default method) – Sharesight assumes that you sell your longest held shares first.
- First in, last 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.
Losses carried forward
Any carry-forward losses from the previous reporting period may be entered next to the date range selector before running the report. The carry-forward loss will be included in the losses section of the report.
Step 1 – Click on the Advanced Options button located next to the date range selector.
Step 2 – Save your settings by clicking ‘Apply’
Note: The carry-forward amount is not saved and must be re-entered if you re-run the report.
Capital Gains and losses
This table lists any capital gains and losses during the selected period. Note that quantities and cost bases will be adjusted by Sharesight to allow for any capital returns and capital reconstructions.
- 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 March 13, 2020 UTC