On 1/5/25 12:06 AM, Martin Blais wrote:
On Sat, Jan 4, 2025 at 9:05 PM Alice Ryhl <[email protected]> wrote:
Hi!
I live in Denmark, and under danish law, we must compute capital
gains for a
given stock using the average cost basis. To avoid accumulating
rounding errors,
this is done by keeping track of the total purchase price rather
than the price
per share. When we sell, the gain or loss is computed and rounded
to two digits,
and the gain/loss of the year is the sum of those rounded values.
Interesting. They specifically state that?
Yeah, the law specifically states that average cost basis must be used
for stocks, funds, ETFs and such. That said there are some exceptions,
e.g. for crypto currencies you must use the FIFO method instead.
If I have shares of the same commodity in different banks, the
cost basis must
be considered together. But shares that I own are not counted
together with
shares owned by my husband. So for each commodity, I actually need
two "global"
counters: the total purchase price of the commodity for each person.
My current plan is to have an account called
"Assets:CostBasis:Alice:IUSA" that
keeps track of the total purchase price for the commodity IUSA for
Alice. Then
adjust it up or down each time I buy something. I can book the
other end of the
transaction to the "Assets:CostBasis" account so that everything
sums to zero
and doesn't affect the net worth.
I would just write a script that knows about your linked accounts for
the same commodity and that computes the average cost basis across them.
Then when you close positions, use that cost basis (entering it manually).
It seems tricky to do just based on the information in the transaction.
I might buy something using USD, or I might sell something and receive
USD. But it's the equivalent value in DKK that matters. Sometimes, the
DKK value of a certain transaction is reported to the tax authorities by
someone else, and in that case I need to use whatever DKK value they're
using for it to add up.
I guess one option is to add meta attributes that specify the price for
a transaction in DKK, and also let sales have a meta attribute
containing the gain/loss, and have the plugin emit an error if the
gain/loss is incorrect.
Danish law also mandates taxation of unrealized gains on some
assets. I'm
thinking that I can do this by having a transaction at the end of
year that
increases the purchase price to the current market value.
That seems right.
MTM like our Section 1256 in the US (e.g., holding a futures position
across the new year).
Thoughts? Is there a better way to do this?
Alice
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