If you have a capital loss you do not reduce the cost of the share price. You record it as a loss for the year and use that to offset your capital gains
I’m aware of offsetting Capital losses against the gains but in determining whether I’m ahead in my multiple transactions in a particular company. I’m lost in how to handle this capital loss in determining my new share cost. The share outcome could basically give me a reduced cost base of a share or the share becomes an earner at no cost to me.
Since I can claim a loss against a gain - which is an advantage or benefit to me - should I consider this claim as a benefit in determining the new theoretical cost of each share at that period of time.
Currently, I’m adding the imputation credit, unfranked and franked dividends including capital gains as a benefit to me. This benefit is subtracted from the average cost the current holdings to determine the updated cost of the share.
What I’m asking, is whether I should deduct the CG loss from the updated share price!
I welcome any improvement or errors being pointed out in improving my spreadsheet.
