I’ve just recently started investing in ETFs this year and would like to use sharesight to track my investments. I’ve also opened up kids investment (trust for minor) accounts as well. The plan is to just use my TFN on the kids accounts until they turn 18 and I transfer the brokerage accounts over.
My question is, for tax purposes, can I put the kids’ ETF holding details into my portfolio in sharesight considering I’ll have to pay for tax for whatever their investments earn (dividends) anyway? Or should their holdings go to a different portfolio, which means I’ll have to probably take a “Standard Plan”?
I’ve been playing around with the 3rd party integration as well from pearler. Since my investment and the kids investment both have the same ETF holding, I couldn’t see their holding (NDQ for this case) get imported to sharesight? is it because the holding with the same name already exists in my portfolio?
I’m still on the free plan at the moment since I’m still experimenting on what sort of plan I need to upgrade to.
Hi @jamesg and welcome. I started with a similar issue with investments for my children. Should I record all the holdings in a single portfolio in my name or have separate portfolios for each of them? I started with the former and eventually moved to the later. As an aside I arranged tax file numbers for them (notwithstanding that they are minors) and set up online trading accounts in my name atf the child and included their TFN. (Note - dividends paid to minors in Australia are taxed at top marginal rates.) So considering that, you can either consider the holdings ‘‘your’’ investments (in which case you’d use your TFN) and perhaps just record any split between you and the child outside of sharesight (or in the notes section of the holding). The other option is to use their TFN and have a separate portfolio for you and each child. I went for the later approach and it has served me well over the years. Tax returns are simple etc. Good luck
Thanks a lot for getting back to my question @mwse .
Ye, I read that I put the minor trust funds account under the kids’ TFN, they’ll be charged at the max tax bracket. So I ended up using my TFN first and just transfer the investment account to them when they turn 18 where they can use their own TFNs. And since their accounts are under my TFN, I thought I could just put their holdings into own portfolio so save some monies.
The only reason why I thought putting theirs into their own portfolios is to make it easier later on to run the different CGT sale scenarios on my own holdings.
Thanks again for this. I might consider going for the standard plan.
Sounds like a plan. (Not giving tax advice) but you are correct that there would likely be CGT involved when you move from your TFN to theirs when they turn 18. Some available investment options for minors that are not (as) impacted by the top marginal rate are Dividend Substitution Share Plans offered by LICs like AFIC, Argo and AMCIL (you get shares at zero cost base instead of dividends). Also Insurance Bonds are worth a look (good 30% flat tax outcome, locked up for 10 years, but high fees). Good luck