Updating cost data for adjustments or transfers in added when the cost base was unknown | Praemium Help Centre Australia

Updating cost data for adjustments or transfers in added when the cost base was unknown

An adjustment or transfer in where there is no change in beneficial owner (NCBO) may actually be a collection of separate tax parcels that can be split into their respective components for tax calculation purposes.

When the breakdown of the tax parcels is unknown, you will need to enter the adjustment or transfer in (NCBO) as a single transaction.

Where the Cost base unknown? column for a transaction is marked as True, a Tax lots button will display.

To split out the adjustment or transfer once you receive cost data:

  1. From Trading Activity, click Transaction History.
  2. Click Tax Lots beside the adjustment or transfer in (NCBO) you want to split.

  1. Complete the following fields for each tax lot:
Field
Description
Notes
DateType the date of the transaction.The date cannot exceed the original transaction date for the adjustment you are splitting.
QuantityType the number of units for this lot.The combined total of all tax lot quantities must equal the original quantity of the transaction.
Total AmountType the amount(s) paid for the units.
  1. Click Validate Tax Lots. The system checks that the quantity of the tax lots equals the adjustment quantity and that the dates do not exceed the adjustment transaction date.
  2. Click Update Tax Lots. The system displays a Tax Lots Updated message.
  3. Click OK.

The original adjustment or transfer in is now split into the separate tax lots and updated with the new cost base information. The Cost Base Unknown field now displays as False.

In the following example, two separate tax lots were entered for the transfer in NCBO for 500 BHP.  This has now been split into two separate transfer in NCBO transactions.  The tax date for each tax lot that was entered is shown in the Notes.