Capital Gains

Introduction

The calculation of the Capital Gains/Loss will depend on the method chosen for calculating the value of the holdings in an account.

Some standard ways of calculating the value include

• First In, First Out
• Average Cost Basis Method, Investopedia
• LIFO
• Hight-Cost and Low-Cost
• Specific Identification Method

Choosing a method will have a huge impact on the resulting amount and the tax liability.

Ledger Implementation

Ledger calculates Capital Gain/Loss based on the information contained in the Lots.

Reports

A gain/loss report is created by using -G option.

For example:

ledger bal investments -G -X EUR

would show the balances report of the Investmens accounts, listing the gain/loss expressed in Euros.