Dollar cost averaging + P/L

[crown93]

Hello!

If I am dollar cost averaging to buy a stock - say VAS every fortnight - and paying brokerage every time I buy, how do I actually determine the profit when selling as the purchase price will naturally vary over time?

Is there a simple calculation?

Hope that makes sense!

 

[delalt]

@crown93 for tax purposes:

https://www.ato.gov.au/Tax-professi...tal_gains_tax_on_the_sales_of_shares_or_units

according to the ato 3 common methods are:

FIFO (first-in, first out)

LIFO (last-in, first-out)

HIFO (highest-in, first-out)

that said another page seems to indicate as shares are fungible you can pick which shares you are selling

https://www.ato.gov.au/Individuals/...estments/Keeping-records-of-shares-and-units/

for non-tax purposes I would suggest recording a running total of purchases

e.g.

1st purchase 100 shares at $1.80 = $180 (running total $180)

2nd purchase 110 shares at $2 = $220 (running total $400)

...

and seperatly track brokerage

 

[somethingon]

@delalt You are correct in that you may match purchases to sales any way you like. Just don't sell the same share twice.

 

[jordangeneration]

@crown93 I have a spreadsheet of all my purchases (# and $), but sharesight will do it for you free as well - and they track cost basis changes due to AMIT etc.

 

[crown93]

@jordangeneration Sort what is AMT?

 

[rdevotie]

@crown93 https://www.ato.gov.au/general/trus...managed-investment-trusts---overview/?page=15

 

[somethingon]

@jordangeneration Sharesight are a bit inflexible as to the method they use though. You have to choose from various options.