So, I am trying to figure out how Realized Capital Gains calculation works, but it seems it is showing me incorrect values (maybe I need to tweak something?):
Let’s say I bought a share of AAA in 2021 for 10€. At 31/12/2021 it is worth 15€. My (unrealized) Capital gain per share is 5€. I create a graph in Reports->Performance->Calculation selecting year 2021. It shows (unrealized) Capital Gain of 5€, which is correct.
Now, I sold that AAA share in 2022 for let’s say 12€. I create a graph again, selecting only year 2022 (this is probably where my error is). Now the Realized Capital Gains for AAA shows -3€ (a loss of 3€), although my Realized Capital Gain for tax purposes is actually 2€ (a gain of 2€, from 10€ to 12€).
As I said, I am obviously doing something wrong in presenting the data, so, how can I come to the calculation of 2€ gain to be able to correctly (manually) calculate tax for my country for the year 2022?
The only thing you need to change is the period you want the report to take into account. If you select the year 2022 PP calculates the gain as the difference of the actual price and the price of the shares at the beginning of 2022.
Note, if you select a period start the period a day before the first day you are interested in.
It may be more useful to look at the section “Trades”, instead of the performance calculation. Or possibly the “Payments” section, tab “Closed trades”.
Note that trades are first in – first out (FIFO) in PP. This may or may not coincide with the way your local tax law treats trades (if you only sell part of your position).
So, if I understand this correctly, for Realized Capital Gains (tax) purposes I always have to select the period from when the security was bought until the end of year in which it was sold? True - that way it shows correct information.
That will also show me all securities which I probably sold in the previous year as well, but which I then just disregard.
Indeed, this helps a lot! Payments->Closed Trades, as well as Payments->Fees is actually all I need to calculate how much do I owe in taxes.
Thank you guys.
correct. Keep in mind to chose 1 day earlier than the day you purchased the shares, e.g. if you bought on 1st of June the period should start 31st of May
Also keep in mind hat PP uses the FIFO scheme when selling shares.