Disposing of shares
How do I dispose of shares?
You can dispose of your shares in the following ways:
- selling them
- giving them away
- transferring them to a spouse as the result of a breakdown in your marriage or relationship
- through share buy-backs
- through mergers, takeovers and demergers
- because the company goes into liquidation.
Capital gains and losses when disposing of shares
You are likely to make either a capital gain or capital loss when you dispose of your shares. Your capital gain is the difference between your cost base (costs of ownership) and your capital proceeds (what you receive when you sell your shares)
You have a capital loss on your shareholding when an administrator or liquidator makes a written declaration that a company's shares are worthless - you are entitled to offset capital gains against that capital loss, even in future years.
You may be able to reduce your capital gain if:
- you have owned your shares for at least 12 months, or
- you gifted them to a deductible gift recipient, provided they are valued at less than $5,000 and you acquired them at least 12 months earlier.
When you dispose of your shares, you are likely to make a capital gain or capital loss. It's important to have records of the date you obtained the shares and how much you paid for them when you work out your capital gain or capital loss.