Capital gains report short term showing weird numbers

tdh's Avatar

tdh

09 Sep, 2022 09:36 AM

So here in Australia we pay tax on capital gains, and we get a discount if we hold an asset for 12 months. Great, moneydance can report on these... however i cannot make sense of the short/long term capital gains.

I've reprodued my situation in a trivially small file with a single stock, two purchases and a sell.
Jan 2020 - buy 100 units ($1 each)
July 2022 - buy 100 more units ($1 each)
September 2022 - sell all 200 units ($2 each)

i expect we should be able to report on capital gains and i should have made $100 long term gains and $100 short term gains
... and it works perfectly. See screenshot 1 attached

I have enough of a tax bill this year that I need this to be correct, and at this point it seems I may need to all my capital gains calculations by hand :(

Ok, but what if the second purchase is only 10 units? We should make $100 in long term gains and $10 in short term gains
... BUT moneydance reports I have a short gain of $110 and a short term gain of NEGATIVE $90
see screenshot 2

  1. 1 Posted by tdh on 09 Sep, 2022 09:48 AM

    tdh's Avatar

    oh i should mention the above was done on moneydance 2022.4

  2. 2 Posted by tgilbert666 on 18 Sep, 2022 02:25 AM

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    Hi I'm a fellow Australian user, having moved to MD almost three years ago after 30 years of transactions through several PFMs since Checkmate for DOS in 1985.

    Let me start by saying that I really, really like Moneydance and it meets many of my needs. Let me qualify that by saying, the Share handling still leaves a lot to be desired and the share (& tag) reporting is ready for serious attention by the development team. I've never had any meaningfully reliable CG reports from MD despite all my efforts.

    I track my share portfolios casually in MD, but for reliable and ATO-suitable reporting I've decided to pay the subscription to Sharesight as it's reporting is first-class AND autoloads all my brokerage transactions. There's a free version that I think also includes the proper CGT report, although some reports aren't available in the free version. I'm this user at gmail if you want to take the discussion offline.
    Cheers,Tony

  3. 3 Posted by dwg on 18 Sep, 2022 02:55 AM

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    I'm a fellow user.

    As Tony said share handling needs work in Moneydance, at least transactions that have an accounting basis need to be implemented.

    Reporting has been an ongoing problem and a number of problems have been reported with Investment reporting in particular.

    Unfortunately Investments and reporting appear to be increasingly neglected in Moneydance.

    I have been advocating for improvements in Investments for quite some years but I have not seen any real commitment to any focus on Investments.

    There has also been suggestions in the User community for development to be temporarily halted and emphasis placed on resolving many of the smaller issues in Moneydance.

    Des

  4. 4 Posted by -Kevin N. on 18 Sep, 2022 02:22 PM

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    Hi tdh,

    Try using 'Lot Matching' with your test transactions.

    -Kevin N. (not a member of MD support)

  5. 5 Posted by tdh on 19 Sep, 2022 01:30 AM

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    Kevin N - Lot matching does seem to "fix" the issue, but its hardly ideal

  6. 6 Posted by dwg on 19 Sep, 2022 02:25 AM

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    It should be remembered that under Australian Tax law each parcel of shares purchased, even if in the same company, are separate assets for CGT purposes so you need to keep details of each lot

  7. 7 Posted by tonyt on 19 Sep, 2022 09:16 AM

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    Hi dwg
    I have indeed suggested a halt to further features / development and devote a major upgrade to sorting things like reporting, tags, gui, nesting of memorised reports, etc, etc…
    I live in hope. I do wonder but not being a programmer, if there have been so many patches and workarounds over the years in order to sort out bugs that many of the existing problems going back years may not be sortable and would involve a major rewrite of all of the code.

  8. 8 Posted by dwg on 19 Sep, 2022 09:55 AM

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    If I recall correctly a fairly major rewrite occurred for the 2015 version. If some rewriting is required to resolve some issues then so be it. Rewrite it once and get it right. I would suggest that would be the time to add in some missing accounting actions.

    Maintenance is not the sort of work many developers enjoy doing but it has to be done and to my mind there should be a certain amount of satisfaction in getting things fixed and right.

    It would be hoped that fixes/patches already coded would have corrected the issue at hand rather than being a hack.

    Some workarounds, or I should say approaches will always be required as there is not a 100% correlation between Accounting and personal finance but I think the workings of those can be left to those in the community that have the experience/knowledge.

    Accounting rules are a very good basis for personal finance but it is not a perfect fit i.e most of the problems arise in Investments where personal finance is more a superset of accounting.

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