share transfer question

Hi all,

It's been a while since I last posted. Busy, busy.

I've just started on my tax return and have run into a question. This year I transferred some westpac shares from my name into my wife's name. These are shares I bought way back in Dec, 1995. We filled in the transfer form on 27 June, 2003 and used the share price at the close of that day as the price of the shares in the transfer. On the transfer form, we specified the 27 June, 2003 as the date the transfer occurred.Then we mailed the form to Computershare.

Computershare ended up sending me a form for this transfer. On the form they sent to us, it says they transfered the shares on 7 july, 2003 (NOT 27 June).

My question is this...which financial year should I file the CGT triggered by this transfer? Should it be for the year ending 2003, or the year ending 2004?

I reckon it should be the year ending 2003 (ie, the tax return I'm currently filling out) as 27 June is the date we specified the transfer occured. The 7 July, 2003 just sounds like the date Computershare finally got around to updating their registry.

Can anyone help?

Thanks in advance

John
 
Haven't heard of this exact thing before but surely the date of the sale, is that date the contract is signed, 27 June, rather than the day computershare decided to do something about it?

When people trade through brokers the date of sale is the date of the contract note, rather than the day of settlement. Might be a good one for the accountant to check though.
 
Hi

It is normally the date of the contract that is used for cGT purposes, so, in that case use 2003 and the tax office will not complain. For what it is worth, I would also make some notes in a file about what happened and the sequence of events to protect yourself should the tax office ask questions a couple of years from now.

Dale


Dale

Originally posted by john doe
Hi all,

It's been a while since I last posted. Busy, busy.

I've just started on my tax return and have run into a question. This year I transferred some westpac shares from my name into my wife's name. These are shares I bought way back in Dec, 1995. We filled in the transfer form on 27 June, 2003 and used the share price at the close of that day as the price of the shares in the transfer. On the transfer form, we specified the 27 June, 2003 as the date the transfer occurred.Then we mailed the form to Computershare.

Computershare ended up sending me a form for this transfer. On the form they sent to us, it says they transfered the shares on 7 july, 2003 (NOT 27 June).

My question is this...which financial year should I file the CGT triggered by this transfer? Should it be for the year ending 2003, or the year ending 2004?

I reckon it should be the year ending 2003 (ie, the tax return I'm currently filling out) as 27 June is the date we specified the transfer occured. The 7 July, 2003 just sounds like the date Computershare finally got around to updating their registry.

Can anyone help?

Thanks in advance

John
 
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