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How do I know which shares are being sold?

Pearler Features

I have 141 shares in VGS. I bought 55 in a single transaction at $96.76. Does Pearler allow me to sell only those 55 shares? If I go select "Sell VGS" and request to sell 55 shares, which ones are being sold? It isn't clear how Pearler selects the shares to be sold. Are they first in first out?

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Stephen Cookson

Asked on 21 March 2024

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Dave Gow - Strong Money Australia

Investor

Thu, 28th March 2024

Hi Stephen.

Good question. For the practicality of a sale, all shares are considered equal on the Pearler platform (and any other brokerage for that matter). It’s all just one holding.

What really matters is how you record it for tax purposes. It’s up to you which shares you consider sold. And you do that either via keeping a record – paper or spreadsheet – or via the Sharesight platform if you use that.

If you record those details – 55 shares sold at X price, this then matches up nicely with your purchase quantity. So then at tax time you would declare the capital gain between what you paid vs what you sold for.

Hope that helps.
Dave

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