Hi all. Acouple of questions.
I understand that if you borrow money from say a LOC or other form of loan to buy shares then the interest is tax deductible.
I also understand that if you sell the shares you must pay back the amount borrowed for the shares because once you no longer have the asset/shares the borrowed funds are no longer tax deductible. I also assume that if you sell for a loss you should pay the remaining amount off if possible as this wil not be tax deductible. In the case of a profit sale i guess you would pay the debt,allow for tax and enjoy the profits how you see fit.
I hope my understanding is correct.
Where i get a little confused is when you buy and sell the same shares that you bought for different prices at different times. How is the tax worked out.
ABC shares bought 100 at 1.20
250 at 1.30
1000 at .90 ( made up values of coarse)
300 at 1.35
Then you sell 1500 at 1.50
How would tax be worked out or how would i record this for the tax man so he can work it out.
Sorry if this is a dumb question. I only just started trading small amounts and want to get it right.