Hi all,

Just posting a quick question in the hope someone here might know the answer.

If you have $22,000 (cost price) in FIF investment 1 at the beginning of the tax year

and $10,000 (cost price 5,000 shares at $2 per share) in FIF investment 2 at the beginning of the tax year

and you buy a further $5,000 of investment 2 (5000 shares at $1 a share) during the tax year

and then sell half the investment you has in FIF Investment 2 (5000 shares)

and then subsequent to all of this buy $22,000 (cost price) of FIF investment 3 during the tax year

All prices are NZD

The question is as the share price for FIF investment 2 was different is your remaining holding based on an average of the share price or is a first in first out approach taken?

If the shares remaining are based on the average then you would exceed the threshold but if not you wouldn't or am I misunderstanding how the threshold works?

Thanks in advance to anyone who can cast some light on this. I haven't made any of these transactions yet but am thinking of doing something like this and want to understand the tax implications before I do.