The capital gains report is the report that most regular investors will use to fill in their tax returns.
But how do you use this information on your tax return? This guide outlines the information you can find in the Capital Gains Report.
Report Details
Currency - This is your native currency based on your chosen country.
Total transactions - The total number of your transactions on the Transactions page.
Transactions in timeframe - The number of your transactions for the selected financial year. You can check this on your Transactions page by filtering for the financial year. In this example, I have 862 transactions for the selected financial year.
Tax Settings
This is the Inventory Method and Cost Basis Tracking you used for the selected financial year. You can check and change your Inventory Method and Cost Basis Tracking on your Settings page.
Report Summary
This is a summary of all the capital gains and losses that you have made during the selected financial year.
Details | Description |
Short Term Capital Gains | Short Term Capital Gains are calculated based on gains made on assets held for a short-term period. The threshold is set to the default period of the country you have chosen and can be changed on the Settings page. |
Long Term Capital Gains | Long Term Capital Gains are calculated on gains held for longer than your chosen long-term threshold. In Australia and the US, for example, this occurs when the asset is held for more than one year. As mentioned above, this threshold can be changed on the Settings page. |
Total Capital Losses | Total Capital Losses are calculated on transactions that made a loss instead of a gain. This figure can then be used to offset the capital gain. |
Net Total Capital Gains | Net Total Capital Gains is the calculation of short and long term capital gains minus the total capital losses.
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Short-Term and Long-Term Sales and Dispositions of Capital Assets
Below the summary page, you will see the raw data that makes up this report. This part of the report is called the Short-Term Sales and Other Dispositions of Capital Assets and Long-Term Sales and Other Dispositions of Capital Assets. It includes all the data that makes up the report summary at the top.
Each of these rows will describe an individual capital gains taxable event that has occurred during the selected tax year. The data for these transactions will then be broken down into seven columns:
Details | Description |
Currency | The currency that was responsible for the capital gain/loss |
Bought | The date and time the asset was purchased. |
Sold | The date and time the asset was sold. |
Quantity | The amount of the asset that was sold. |
Cost | The cost base of an asset is the cost associated with acquiring, holding, and disposal of the asset. |
Proceeds | The total cost received or the market value of the asset received at the time of disposal. |
Gain or Loss | Proceeds - Cost = whether you have made a gain or a loss on this trade. If the proceeds is greater than the cost, the difference between the two would be equivalent to your capital gains. Otherwise, if the cost is greater than the proceeds of what it was sold for, then this is a capital loss. |
Adjusting Long Term Threshold
You can adjust the long term threshold on the Settings page > Tax > Long term threshold section.
The default setting is 12 months. You can choose 'Custom' to customize the threshold. This change might affect your Capital Gains Reports. Keep in mind that you should always consult with your accountant regarding any tax settings.
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