wygde3
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RE: Bed and breakfast rule on spouse transfer
Just to be clear, please. The cost base to the donor is the average cost from the Section 104 holding at the time of the transfer? and The cost base to the donor is not affected by any acquisition of the same security within 30 days of the transfer? (This is important as if this is the case, this is different to when selling and then buying the same security within 30 days.) -
Transfer Shares to Spouse and Then Buy Shares
Hi I have transferred a number of shares to my wife, say on 1 July. I understand that she then 'inherits' my cost base for the shares (which as they come from a Section 104 holding is the average price in the holding). However less than 30 days after the transfer, say on 5 July, I then received a dividend in the same stock, in effect a purchase. If I had sold the shares myself and not transferred them to my wife I understand that the dividend would be taken account first before the Section 104 holding of in calculating the sale proceeds for CGT (the dividends having been within 30 days of the sale and in the same stock). However, given that I transferred the stock to my wife, is the base cost of the transfer (which is what my wife will use when she comes to sell) calculated using the dividend acquisition or not? That is, does the cost base for the transfer first take account of the purchase within 30 days and then the Section 104 holding on 1 July or is it solely the Section 104 average price? Thanks for yoru help. -
CGT on Performance Shares
Hi Some years ago I received shares from my company as part of a Performance Share Plan Award. The number of shares were dependent opn performance and, as a n example, let us say that I was due to receive 57 shares. On getting the shares the benefit was taxed as income by selling a number of shares (19) to cover the tax liability. The balance (38) of the shares went into a Vested Share Account. At a later stage the 38 shares in the Vested Share Account were transferred to a different brokerage account. I sold the 38 shares and am looking to calculate the CGT. To do this I need to establish the Cost Basis for the shares that I have sold. 1) Is the Cost Basis the share price when the tax was paid and the 38 went into the Vested Share Account? Or is the Cost Basis the share price when the 38 shares left the Vested Share Account? Or is the Cost Basis on the 38 shares zero? 2) I understand that I can add various commissions, stamp duty, etc. to the cost basis. I assume that the tax paid at the time of vesting is not added to the cost basis? (Seems like a foolish question but just want to make sure.) Many thanks for your help to understand exactly what the Cost Basis is. Regards.