How do I handle the T3 Telstra instalment receipts, with the bonus loyalty share issue?
First, read this document. Here are two alternative methods. These two examples assume that you’re classed as an Individual taxpayer, and you didn’t pre-pay the instalment receipts. These examples represent general advice only. Please check with your accountant as to what is appropriate for your situation. The easiest method is based on treating the bonus loyalty shares as a share split. However, the bonus shares won’t be identified as a separate parcel – all shares will be seen by Topshare as having the same date of acquisition, being the date you acquired the original TLSCA. It’s unclear from the ATO link (above) whether this would be correct – that is, if you sold all your new TLS tomorrow, at a profit, would the bonus shares be eligible for the 50% CG discount? Perhaps not, if they were treated as being acquired when the instalment was paid out. But Topshare will treat all the shares as being bought at the float in 2006, and will apply the 50% discount to all. To use this method, f
Related Questions
- Will subsequent bonus share issue distributions calculate a shareholder’s entitlement off the total number of shares held including previous bonus shares retained?
- What happens if the underlying share is subject to a corporate action (such as a takeover or bonus issue)?
- How do I handle the T3 Telstra instalment receipts, with the bonus loyalty share issue?
