Confusion over CGT report calculation

[Paul440]

Hi there,

I've generated a CGT report and don't agree with the calculations/approach. I sold all the shares (6800 shares) I had with the underlying purchases done at 3 different times. One of the purchases (1500) resulted in a loss, the other purchase (300 shares) a gain, however the report lumps these together as one overall loss of 1800 shares.

I don't normally see this - the CGT report is good at separating out parcels that produce gains and losses over short and long term periods.

The attached screenshot hopefully explains it all.
(THe separate line item shown for 5000 shares is correct, it is the lumping together of the 1500 and 300 shares as a single "Loss" line of 1800 shares that I don't get.

Can you please tell me if I have done something wrong?

Thanks.

[Mark]

Hi Paul440,

This is normal behavior when not using the wash sale rules option. If you sell some shares, it will group all purchases of these sold shares of the same term (short/long) together.

If you're using the Professional or Advisor versions, you can enable the option to use wash sale rules, and then every purchase will be listed separately, even for the same sell transaction. This option is available from within a report window under "Options / Report Preferences... / Capital Gains / Use Wash Sale Rules".

[Paul440]

Thanks Mark!

Makes sense. I think I got confused because I was so used to seeing FM separate out the items, but you are right it probably separated when there was differences between Long/Short.

Thanks for speedy response and clearing that up for me.

Paul.