Filling in the K4 form can be complicated if you are not used to declaring shares and funds. One of the most important concepts is the cost basis, which is used to calculate the profit or loss when you sell. With a clear understanding of how the amount works, it will be easier to fill in the form correctly and plan your investments.
What are overheads?
The cost amount is the price you actually paid for your shares, including any fees such as brokerage. It is used together with the sale price to calculate the profit or loss to be declared on the K4. Once you know the amount, you'll have a clearer picture of how much you've earned or lost and how it affects your tax.
Calculate the cost amount step by step
To calculate the cost amount, start with the purchase price and add any costs. If you bought the same share on several occasions, you can use the average method to calculate an average amount. This is the amount you then enter in the K4 together with the sale price and any deductions. Clear documentation makes the process easier and reduces the risk of errors in your tax return.
Get help during your tax return
If you are unsure, Monitor Capital Markets can provide guidance throughout the process. We can help you understand how the expense amount affects profits, show you examples and explain how to fill in the K4 correctly. This will make it easier to file your tax return, while giving you a better overview of your stock trades.
Combining basic knowledge with expert support puts you in control of your tax return and enables you to make informed decisions about future sales. With Monitor Capital Markets by your side, the whole process becomes more manageable and clear, without you having to worry about rules or calculations.
Read more why you should choose us
A selection of companies where we’ve facilitated transactions →
We broker deals in both innovative startups and established corporations. So far, we've completed transactions in more than 130 companies – and we actively track and have insight into over 1,000 companies. Our broad investor network means new opportunities are always on our radar.