Its simple bull, if its an identified individual parcel, then you can use LIFO otherwise if your buying and selling continuously the same stock you have to use the avg cost price.
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Yes that's true but in relation to the question Cylical asked about whether his sale would be taxed according to the avg buy cost of his whole holding if he bought a specified trading parcel now, the answer is no it wouldn't, I'm taking it that the rest of his holding is a long term hold.
There's a separate thread about tax here https://www.sharetrader.co.nz/showth...&highlight=tax
Can we please get back to OCA ?
I would imagine there's huge relief amongst vulnerable elderly folks regarding the vaccine news today. What a great day for humanity. Thank God for our wonderful hard working scientists who have worked so hard on this breakthrough ! More than 90% effective !! https://www.cnbc.com/2020/11/09/covi...infection.html
NZ’s IRD may require you to use a specific sale allocation method in your situation (often FIFO), consult your accountant for information specific to your situation
https://www.sharesight.com/blog/calc...0from%20shares
Thanks Couta, much appreciated, yours are exactly the type of useful responses I was looking for. I'll be in touch and refrain from further off topic comment in this thread...wouldn't want to upset the resident "accountant" any further for polluting his beloved thread :D
I use LIFO to value my closing stock. Although I haven't done it yet, I would also use lower of LIFO cost and market value. In a rising market it would be preferable to use FIFO, but as I don't like to chase a stock when the price is rising, FIFO is not as lucrative. But I am not so sure about changing between the various methods, you could become unstuck. But have to get caught. Like it was said in the end it doesn't matter.