The tax preference setting you select to apply for an account will apply whenever you partially sell units in an investment (unless you select specific units to sell when initiating a transaction.
How to change tax preferences as a client
- Once you have logged into the Netwealth online platform.
- Navigate to My Details > Account Settings.
- Select the "Tax preference" option in the top banner.
- From here, you can adjust the tax preference on all accounts in your name by clicking on the drop down.
How to change tax preferences as an adviser
- Once you have logged into the Netwealth online platform, please navigate to the account using the "search for a client..." bar. Select the client you wish to change the tax preferences for.
- Navigate to Client Details > Account Settings. Select the "Tax preference" option in the top banner.
- From here, you can adjust the tax preference on all accounts in your name by clicking on the drop down.
What are the options for tax preferences?
FIFO: Units will be sold on a 'first-in-first-out basis', meaning units with the earliest purchase date will be sold first.
LIFO: Units will be sold on a 'last-in-first-out basis', meaning units with the most recent purchase date will be sold first.
Minimise gain: Units with the highest cost base will be sold with the intent of minimising your realised capital gain.
Maximise gain: Units with the lowest cost base will be sold with the intent of maximising your realised capital gain.
NB: The tax preference setting will determine which units are to be sold based on information available to Netwealth as at the time of sale.