PMGOLD management fee - tax treatment for individuals ?

I'm having a crack at doing Mrs Stackman's individual tax return using e-tax. She acquired some PMGOLD options in her own name (clever girl) and so incurred the 0.15% management fee, which is deducted as units from her holding on 31 December.

From what I can gather the management fee should not be treated as a deduction, but instead forms part of the capital gains tax cost base when the PMGOLDs are finally disposed of.

Can anyone confirm if that is correct and current ? :|

 

Tax treatment of PMGOLD detailed here http://www.perthmint.com.au//documents/PMG_Tax_Issues.pdf. Everything gets capitalised as there is no income from gold.

 

Thanks for the link Bron.

So there is my answer for this year.

I am still not clear how the management fee affects the capital gain calculation, but we can worry about that when we sell. Or better still, maybe I'll just take it to an accountant.

 

You just add it to the cost you paid for the PMGOLD and that becomes your cost base when working out your profit.

It is a bit more complicated because we deduct units, but that is what accountants are for.