Identifier: C5T3L4 · Revision: 2026-10-26 · Classification: domestic

Decision and objectives

The practical task is to maintain linked lot, cash, currency and source records. Make the decision reproducible: name the exposure, time horizon, cash requirement and comparison baseline before selecting a product.

Objectives: Maintain linked lot, cash, currency and source records; Reconcile economic base-currency gain without pretending it is automatically taxable gain; Resolve missing or duplicate entries before final reporting.

Prerequisite: C5T3L3; completed Classes 1–4 and the Stock Market School foundation or Forex School foundation. Every example is hypothetical. Prices, dates, rates, fees, contract factors, policies and tax schedules are supplied teaching inputs, not current offers or legal parameters. No live account is needed.

Mechanics

A usable investment record links the instrument identifier, ownership account, acquisition lot, quantity, price convention, accrued interest where relevant, transaction/settlement dates, cash income, fees, withholding and currency conversion. Preserve source documents and the rule version used in a tax conclusion. A spreadsheet total without its acquisition dates cannot support acquisition-sensitive treatment.

Keep security movements and cash movements separate. A coupon changes cash without changing face amount; a collateral deposit changes restricted cash without becoming a trading expense. A sale can remove a holding before bank proceeds are transferable.

Price and return drivers

Economic base-currency gain = converted sale proceeds + converted income − converted acquisition cost − dated costs − supplied tax. When currency is held between dates, use actual relevant conversion conventions rather than retroactively assume every flow used the exit FX rate. This economic reconciliation is not a claim about the statutory taxable base, which follows its own rules.

Worked case

Hypothetical record: 2026 resident individual buys USD 10,000 economic cost on 5 January at TRY 40/USD: TRY 400,000. A USD 300 coupon on 30 June is converted at 42: TRY 12,600. Sale proceeds USD 10,200 on 20 October convert at 44: TRY 448,800. Sale fee USD 20 converts at 44: TRY 880; fictional total tax paid TRY 2,500. Net economic gain = 448,800 + 12,600 − 400,000 − 880 − 2,500 = TRY 58,020. Sale-only gross gain TRY 48,800 decomposes into USD 200 price gain × 44 = TRY 8,800 and USD 10,000 principal FX change × 4 = TRY 40,000. Those components are reporting explanations, not automatic legal tax categories.

Adverse case

If the coupon is also included in sale proceeds as a separate mistaken cash line, reported gain is overstated by TRY 12,600. If the USD 20 fee was already netted in the quoted proceeds, deducting it again understates gain by TRY 880; obtain the confirmation's gross/net boundary. A missing original lot cannot be repaired by assigning today's date or by averaging unrelated instruments. Tax-sensitive reporting should remain unresolved until evidence is obtained.

Practical use

Export confirmations and statements from the permitted intermediary and reconcile them with bank/custody records. Store exact source URLs, retrieval dates and the legal rule effective date with conclusions. Protect sensitive account data in real use; exercises here use fictional records. Include transfer, custody, conversion and funding costs if actually incurred, and label any excluded line instead of silently assuming it zero.

Use permitted domestic access routes and the actual instrument documents. Verify intermediary authority, investor eligibility, order/redemption terms, settlement, custody and executable size before implementation. Reconcile spread and commissions, funding, collateral, custody, product expenses, conversion and exit charges; an amount already embedded in a fill or fund unit price is not deducted again. A published mark or product description does not promise an executable price or liquidity.

Tax is excluded unless a numerical schedule is expressly supplied as hypothetical. For actual rules record income year, residence and individual/corporate status, instrument and acquisition/contract dates, taxable event and rule effective date. The GIB investment-income guide, checked 2026-10-26, covers 2025 individual income; its 2026 publication date alone cannot settle a 2026 liability.

Decision boundaries

Use records to explain both economic result and tax evidence. Avoid overwriting corrections: retain the original entry and a traceable adjustment. If an unexplained difference affects ownership or available cash, pause any transfer or tax-sensitive trade that depends on that balance.

Practice and references

Exercise: hypothetical 100 shares bought at TRY 20, acquisition commission TRY 10; sold at TRY 24 with exit commission TRY 10; cash distribution TRY 50 less fictional tax TRY 5. Solution: acquisition cash TRY 2,010; sale net TRY 2,390; distribution net TRY 45; total gain 2,390 + 45 − 2,010 = TRY 425. Preserve share quantity and all three cash dates separately.

Takeaway: Resolve missing or duplicate entries before final reporting with the cash dates, costs and remaining risks stated.

Product card: portfolio-decision-record. Formula: Dated base-currency economic gain. Glossary: Audit trail, Economic currency gain. Next lesson: C5T4L1. Topic test.

Sources checked 2026-10-26:

Shared reference guide | Class examination