To illustrate.
Use case
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Business has multiple owners / members. Value of each members holding is recalculated at least at the end of each financial year.
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For Investments such as shares revaluation at the end of financial year result in a non taxable income which is distributed to members balance ie realised by Members but not by the tax authority as taxable income.
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Investment share sales result in taxable income (realised by the business and tax office). Note unrealised adjustment is also recalculated at least by the end of the financial year.
Test Data
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2022-01-10 Purchase 500 shares @ $100.00 each in International 01 total $50,000
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2022-06-30 Investment revaluation International 01 price $104.00 x 500 =$52,000, revaluation $2,000
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2022-12-20 Sale 100 shares @ $110 each in International 01 total $11,000, Taxable capital gains $1000
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2022-06-30 Investment revaluation International 01 price $115.00 x 400 = $46,000. Which is $,6000 more than the purchase price but as already reported $2000 revaluation, the change in valuation is +$4,000.
Old Business summary page (with accounts for manual data entry). Note Manager system account “Capital gains on investments” contain the capital gain on declared to the tax department on sale of 100 shares at $110, purchased at $100 each, a 2022-12-20 event
In a newly created Manger business. Note Note Manager system account “Capital gains on investments” contain the change on investment shares revaluation, 500 shares valued at $104 vs purchase price $100 each, a 2022-06-30 event, calculated via the Investment summary report as Unrealised gains and entered as realised gain in the Investment Revaluations tab.
