Returns are calculated the wrong way

[Early_Bird]

Hello.

I have a situation. I entered some transactions all seems ok, I have this market value, realised returns and total returns:

then I entered some sell transactions, and something very wired is happening. the numbers look like this:

What happened:

1. Average buy price increased
2. Realised return is greater that total return
3. Unrealised return became negative
4. Realised return is calculated with profit from the first transactions, not from average buy price

This is an issue from the tax perspective, because every tax is applied to actual realised profit which is (actual price x sold quantity) - (average price x sold quantity). every broker and authority calculates the same, so there will be discrepancies between app returns and the real ones

So in my example, instead of having realised return ~150E and unrealised return of ~250E (which is the correct version) , I have realised return of ~500E and unrealised return of ~ -100E, which is not true even id the overall total is the same.

I find it useful to see the profit per transaction (in the table), looking at the first transactions, but the totals from the top should be calculated in relation with the average buy price.

[rafal]

Hey, which country do you live in? Capitally currently calculates everything based on the FIFO method, which is used in many countries for tax purposes where it does make perfect sense to display it this way.

This means, that average buy price and unrealized returns are based only on the lots that were not sold yet. And realized returns are calculated only based on what is sold + dividends and other income/expense.

If you open the Taxable Income Report you’ll see it in detail if you group by Position Unit.

Part of implementing cash tracking will be to add support for average buy price - you’ll be able to choose the method per account, asset and position.