Buy In price falsch

[Angela]

Hi all,

I have notice an error of average buy-in price in TR* in my account, the price rises after I sold some shares.
I bought Tesla stocks in last months for 4 times, each time 10 shares, and in total 40 shares. Here is the buy-in history: (118.88€*10)+(162.02€*10)+(178.54€*10)+(168.48€*10)=156.98€ Buy-in price. On Feb. 10, I sold 20 shares for a price 183.32€, the profit is +16.7% (this is showed in the trading history in my account, this culculation is base on an average buy in price of 156.98€).

However, I saw in my account the buy in price of the rest 20 stocks has changed to 173.61€ now, for me this doesn't make sense. I have already sent an email to TR and still wait for reply. Have you also had the same problem, how did you solved?

Thank you!
Angela

 

[hsvdin0]

Hi @Angela,

first of all, the fact that the buy in rises after selling is not uncommon and no mistake. It could also be the other way around, of course.
This is due to the "FIFO-Principle" (first in-first out).

You said you sold 20 shares. This means you effectively sold the 10 shares you bought first for 118.88 € and the 10 shares you bought for 162.02.
You did NOT sell 20 shares of your "old" buy-in of 156.98€.

Therefore you have 20 shares left which you bought for 178.54€ and 168.48€. This is a new buy in of 173.51€, pretty close to the 173.61€ you mentioned.

Important is that this FIFO-principle also has an effect on whether you made profit or loss whilst selling.


I'll make an example with more even numbers for you and others to understand it better.

2021: Buying 1x Share for 100€ -> 100€ = Buy In in the app
2022: Buying 1x Share 150 € -> 125€ Buy In in the app
2023: Selling 1x Share for 200 € -> You sold the one share bought in 2021 for 100€
-> 100€ profit (relevant for taxes)

Your new portfolio: 1 Share with Buy-In 150€

Hope this helps.

 

[Angela]

Hi @hsvdin0,

Thank you very much for answering!

According to your explaination, I sold 20 shares (10 shares I bought first for 118.88 € and the 10 shares I bought for 162.02) at a price of 183.32€, then I should made a profit of (183.32€ -118.88€ )*10 + (183.32€ -162.02€ )*10 = 857.4€ profit = +30.5% profit. But in the trading history, it says this profit is +16.7% (this % should be based on the buy-in price of 156.98€).

That is why I got confused .

 

[Angela]

@hsvdin0, here is the reply from TR*:
"The buy-in reflects the price of the acquisition data of your positions.

This takes into account the purchase price as well as the external settlement fee.

In the case of several purchases, the buy-in is calculated as a weighted average of your purchase prices and therefore doesn't have to correspond to the purchase value of your last purchase."

 

[hsvdin0]

@Angela
To be honest, TR*'s reply seems to me like a text block answer and doesn't even give an answer about the changed buy-in after selling some shares. Not sure what exactly your question to them was, but I assume TR's reply doesn't fully answer it. Or?

Still, from my observation with own transactions backs up what I wrote in comment #2 regarding the "First in-first out" principle. My calculation with your "new buy in" of 173.61 € was pretty close, so I believe that way it is indeed calculated.

Do you know if you paid taxes on the smaller (16.70% profit) or the higher (30.5 % profit)? From what I see on my transactions, the FIFO-Principle also accounts for the taxes.


If you paid taxes on the 30.5 %, it seems that only the trading history shows a different / wrong (?) value as the FIFO-Principle is not considered there.

 

[Angela]

Hi @hsvdin0, thanks a lot for replying!

You are right, TR doesn't really answer my question. I asked them the same question as I have written down here. I wrote back and explained my question again, and now they suggest me to pay 25 euro for an income statement.

Regarding your question:
"Do you know if you paid taxes on the smaller (16.70% profit) or the higher (30.5 % profit)? From what I see on my transactions, the FIFO-Principle also accounts for the taxes.
If you paid taxes on the 30.5 %, it seems that only the trading history shows a different / wrong (?) value as the FIFO-Principle is not considered there."

Indeed I don't know on what amount I pay taxes, do you know where I can check for such info?

Thank you!! Have a nice evening!
Angela