Instructions to account for the BHP Billiton Limited (BHP) off market share buyback of 17 December 2018. Follow these instructions to account for the shares that have been successfully tendered in the off-market share buyback. In this buyback, you received $27.64 per share, with $27.26 deemed a dividend component. The market value deemed by the ATO was $32.18.
The example uses the following data and assumptions, please amend accordingly for individual holdings.
1200 BHP shares purchased on 30 Jun 2014
Purchase price on 30 Jun 2014 $25.00
Total cost: $30,029.95
You ‘nominate’/’were scaled back’ to 200 shares (from your parcel of 1200) for the buyback.
Instructions for Stock Doctor
- Click on the 'Portfolio’ tab and then click on the appropriate under ‘My Portfolio(s)’, which includes the BHP shares.
- Under the ‘Securities Held’ section, find the row BHP Billiton Limited (BHP). Click the drop down button next to ‘Transactions’ on the same line, and select ‘New Buyback’.
- In the new dialogue box:
3a. Enter the Buy-back date as 17 December 2018.
3b. The No. of shares to rollover is 200 (this should be the number of shares you elected for the buyback).
3c. Enter $27.64 as the Per Share amount for Total Received Including Income ($). The Total ($) should auto-calculate.
3d. Enter $32.18 as the Per Share amount for Market Value (deemed by ATO) ($). The Total ($) should auto-calculate.
3e. Click Enter Income. This should take you to the next ‘Income’ dialogue box.
- A new ‘Income’ dialogue box tab should appear:
4a. Franked Income ($) is $5,452.00. i.e. $27.26 per share for 200 shares.
4b. The Franking Credit ($) is $2,336.57, i.e. $11.68285714 per share for 200 shares. ($27.26 x 30% / 70%)
4c. The totals should auto-calculate.
4d. Click the Trade Allocation button to go through to the Trade Allocation tab of the dialogue box.
- You should be in the Trade Allocation tab of the Dialogue Box.
5a. Allocate the trade from the drop down box: Oldest First, Newest First, Smallest Capital Gain or Largest Capital Gain.
5b. The quantity to sell should match the amount you nominated for buyback (or scale back amount).
5c. Click Save
You have now accounted for the BHP buyback.