Investment Sale Commission question

[John Ralls]

> On Dec 2, 2016, at 10:26 PM, Chris Good <chris.good at ozemail.com.au> wrote:
> 
> Hi,
> 
> 
> 
> I'd like to update the guide investment selling shares section with some
> better information about how to handle commission.
> 
> See attachment 1 for the section I wish to update.
> 
> 
> 
> The guide example says:
> 
> 
> 
> and finally PROFIT is $1525 (GROSS_SALE-TOTALBUY-COMMISSION).
> 
> 
> 
> but shows profit and capital gain as $1600.
> 
> If you do the sale transaction as per the example, the Trial Balance is OK,
> but the capital gain is overstated.
> 
> 
> 
> I've tried to alter the splits to get capital gain of $1525 but either I end
> up with an Imbalance split of $75 (commission value) or the Trial Balance is
> out by $75 (Dr > Cr).
> 
> Please see attachment 2 for the balanced transaction as I think it should
> be, but which causes the Trial Balance problem.
> 
> 
> 
> Could some-one please advise how to arrive at a capital gain of $1525 and a
> balancing Trial Balance or explain why this is not possible?
> 

Chris,

You *either* expense the commission *or* reduce the capital gain, depending on your tax laws. Allowing both would be a very generous tax regime indeed, but regardless also produces an imbalance in the book because you're counting the commission twice.

Regards,
John Ralls