Advanced Portfolio and Profit/Loss

[AmigaPhil]

Jannick Asmus wrote:

> Here in Germany the situation is a bit more complicated: Realized gains are
> taxed and taxes are immediately reduced from the amount payed to your bank
> account after selling your stocks. Realized losses are not taxed, but they
> are accrued to a shadow account and - if it comes to a realized gain later
> selling another stock - the gain is off-set against the shadow account to
> get the amount to be taxed.

I'm afraid that you won't be able to trace that with the Advanced Portfolio.


> What I am trying to do as a first step is to account for selling stocks with
> immediate tax deductibles on realized gains, say, using the FIFO approach
> such that it is appropriately shown in the advanced portfolio report (here
> taxes can be treated as fees) and a proper P&L. It shouldn't be such that
> additional transactions should be edited on the basis of complicated
> formulae, since I would like to have a really intiutive approach for
> tracking all my investment movements in this year.

Keeping "on hold" a loss to later substract it from a profit before taxes
is too complex and out of the scope of the A-P report.
I read somewhere that the A-P is not to be taken as a performance report,
but just as a snapshot of the value of your portfolio at a given date.

I think however that in the end (when you sell all your shares), the
realized gains and brokerage fees shown in A-P will be accurate.
Just don't register any tax (in the stock account) when you sell at loss.
When you sell with profit, register the tax due for the amount,
then add another transaction to balance the taxes with any previous "sell
at loss" (you should be able to do this with the same method as to add
dividend-in-cash, that is registering it in your stock account with just
"1" in the column "Price").



AmigaPhil