If I have 1m shares in AOE which I paid $4 each for then on demerger, I will receive $4.7m in cash based on $4.70 a share and 500,000 shares in Dart Energy.
How does capital gains work.
Do I have a capital gain of 1m x ($4.70-$4.00) = $700,000? In this circumstance do I have a zero cost base for capital gains purposes for my Dart shares.
Or do I have to split the cost base of $4 between AOE shares and Dart shares? How do I do this - use the day opening price of Dart?
AOE Price at posting:
$4.88 Sentiment: Buy Disclosure: Held
