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Asset disposals – direct equities, hybrid, unit trust or managed fund

To record asset disposals select the ASSETS tab and click the ASSET DISPOSAL button.

Select the relevant account and asset to be disposed of.

Note:  The disposal of direct equities, hybrids and units in unit trusts or managed funds are all entered in a similar manner.

The disposals of Bonds, Fixed Interest investments, Direct Property, Alternative Assets or Derivatives are handled slightly differently.

If you choose a Direct Equities, Hybrid, Unit Trust or Managed Fund for disposal, Mclowd will display this screen:

Note:  If GST is enabled in the Fund Details, Mclowd will calculate the GST on any brokerage fee entered. Although the calculated amount of 1/11th of the fee will display, the system will save 75% of that amount to the Account 2-1030 GST Payable/Refundable, in accordance with the ATO’s ruling that only 75% of input-taxed expenses can be claimed.

In case you are not disposing of the entire volume at this time, Mclowd™ needs to know your preference of disposal method. You may choose to sell units:

  • in the order purchased (earliest purchases first, or more recent purchases first)
  • in the most tax efficient manner (Mclowd will calculate this for you)  
  • in the least tax efficient manner

or you can opt to manually select the specific units to sell.

If you choose to manually select, Mclowd will display a list acquisitions, showing the purchase date, units purchased, average cost per unit, and total cost for each acquisition.

You can enter the number of units you wish to sell from each acquired bundle, and Mclowd will calculate the balance left and long and short term capital gain resulting from this disposal.

Should you choose one of the automated options (first in first out, last in last out, most tax efficient, or least tax efficient), Mclowd will display the assets parcels with units sold filled out, units left calculated, and long and short term capital gain resulting from this disposal.

When you are satisfied with the selection and results, click DISPOSE OF ASSET to finalise the disposal.