What are overheads?

The cost basis is a key concept when you sell shares. It determines how much profit or loss you make and therefore how much tax you have to pay. For many, the rules around its calculation and application can seem complicated, but with the right understanding, it becomes clear how the amount affects your investments.

How the overhead rate is defined

The cost amount is the amount used to calculate capital gains or losses when selling shares. It usually includes the price you bought the shares for, as well as any costs such as brokerage and other fees associated with the purchase. By understanding what is included, you can get an accurate picture of the gain and plan your future transactions in a more informed way.

Calculate the cost amount step by step

To calculate the cost amount, you start with the acquisition value, i.e. what you paid for the shares including any fees. If you bought the same share on different occasions, you usually use the average method to calculate an average amount. Once you have calculated the cost amount, you can easily subtract it from the sale price to get the profit or loss, which is the basis for tax. Doing the calculation carefully gives you more control over your finances and reduces the risk of mistakes on your tax return. Here you can read more about how it works. 

Get support from an experienced stockbroker

Understanding and calculating load amounts can feel overwhelming, especially if you have many shares or complex transactions. As a stockbroker, you can Monitor Capital Markets support you through the process and explain what applies to your particular situation. With our help, you will not only get a clear overview of the amounts and benefits, but also advice on how to optimize your decisions and plan your investments for the long term.

With the support of our stockbrokers, you'll be able to make clear calculations and informed decisions, while easily navigating the entire sales process.