I have been fortunate enough, to profit quite well for the last few years, from a long only trend following system (equities). I have been investigating ways in which I can reduce the tax drag I have been experiencing (especially after my recent CGT bill for last financial year - damn you LNG ). In the past, some of my large winners have fallen short of being 365 day (or more) trades - thus not being illegible for the 50% CGT discount.
I'm looking at hedging some of my recent winners, through the use of CFD's - and then holding the hedge until the long leg enters the 365 day holding period, thus providing a tax saving (minus all the costs: financing, brokerage, borrowing-fees, etc.).
I'm looking for resources (reference) or just general guidance on some of the following questions:
1) Are there any tax rules that would exempt me from claiming the 50% CGT discount from closed hedged positions (i.e. similar to the 45 day franking credits rule)?
2) Tax treatment of CFD's (i.e. similar to shares - capital gains/losses - see this resource: https://www.bellmontsecurities.com.a...and-options/)?
3) Are all the costs associated with holding a short CFD position tax deductible (i.e. financing, brokerage, borrowing-fees)?
Thanks in advance guys!