Manually applying sell trade to specific shares in holding

• What feature do you want to see in Sharesight?
Ability to select which shares from which parcel you are selling. Currently ShareSight only supports the following options -

  • 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.
  • Minimise Capital Gain tax - Takes discounting rules into consideration to minimise your taxable gain

• Why do you want it?
There are situations where I want to manually select which shares from which parcel I sold. This doesn’t work with the current options that you can elect with Sharesight.

• How is this affecting you?
I’m unable to effectively manage my records for tax purposes.

• Do you currently have a workaround solution? If yes, what is it?
I have to manually modify my CGT and sold share reports to keep accurate records for tax purposes.

• Can we reach out in future to ask follow up questions about this idea?
Yes

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Hi @Naedish it would be good to understand the need for specific parcel selection and how this works from your end. How are you currently using your workaround solution?

What kind of situations arise where you need to manually select parcels to be sold?

@Jack_Sharesight - I’ll use a very specific example for my situation.

Say that Portfolio 1 is for a specific tax entity. Inside that portfolio I have Brokers A and B. I have purchased holdings with company ABC in the following ways:

Buy 1,000 ABC @ $1 via Broker A in 2001
Buy 1,000 ABC @ $0.5 via Broker B in 2002
Buy 1,000 ABC @ $0.8 via Broker B in 2005
Buy 1,000 ABC @ $0.75 via Broker A in 2005

Sell 2,000 ABC @$2 via Broker B in 2020.

As you can see, I can identify the parcel that I am selling very explicitly as I sold them via a particular share broker. I need a way to explicitly select the parcel in sharesight for CGT purposes to match the reality of my situation. Note that this example simplifies my situation so even if it would be possible to currently ‘trick’ sharesight into selecting that parcel it wouldn’t work for all my examples.

A workaround might be to split brokers A and B into separate portfolios, but that would require me to split my 2 portfolios for 2 tax entities into 5 portfolios for my share brokers. Not an ideal situation and I imagine that this problem is common enough for sharesight users to be a useful feature (selecting specific parcels and/or adding the ability to attach a broker to holdings so the holding can be split within the one portfolio).

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I have a specific example where I want to Minimise Gain, but prioritize parcels that are eligible for long term CGT, saving short term parcels for a future sale.

Eg
100 units @ $12 held < 1 years
100 units @ $2 held 2 years
100 units @ $1 held 3 years

Sell 100 units for $20

I’d like to sell the middle units for a $9 gain ($18 x 50%) rather than the most recent units for a $7 gain, saving them for when I can claim the 50% CGT in a future sale.

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Hi has there been any feed back on this thread by share sight. This is something I wish to do as is impacting my ability to utilise this for my company shares

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I too would like to see the requested feature. But in the meantime, how does Sharesight support the options listed in the original post? I can’t see any way to select which shares the sale will be applied to.
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.
Minimise Capital Gain tax - Takes discounting rules into consideration to minimise your taxable gain

Yeh, this is seriously impacting sharesights usefulness. I am questioning the accounting background of the company for not fully understanding this requirement?

If I purchase a share at x dollars, when selling that share I need to report on the capital gain, and that’s based on the purchase price of the share.

In Australia, as well, there are taxation discounts on the capital gains when that share is held for more than a year. Associating the sale to the specific lot is required for this CGT discount (otherwise, you don’t know how long you held the share for).

Effectively, I would like to associate the sale with a specific lot - and be able to see how many shares are sold per lot, how many are remaining (still held in that lot) and the realised capital gain per lot. This is kind of non-negotiable for CGT purposes here in Australia.

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