Tax query

[craigj]

is it the trading date or the settlement date that is used for the finnancial year come tax time?

is there any problems selling shares that are showing a loss and buying them back same day to reduce capital gain this finnancial year?

any tax tips would be great as this is my first year trading

cheers

 

[drsmith]

is it the trading date or the settlement date that is used for the finnancial year come tax time?

It's the trading date.

http://www.ato.gov.au/individuals/content.asp?doc=/content/36546.htm

If you dispose of a CGT asset to someone else, the CGT event happens when you enter into the contract for disposal.

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Information from the following ATO page and links therein are also well worth a look.

http://www.ato.gov.au/individuals/c...htm&pc=001/002/026/016/004&mnu=&mfp=&st=&cy=1

 

[son of baglimit]

is there any problems selling shares that are showing a loss and buying them back same day to reduce capital gain this finnancial year?
cheers

http://www.ato.gov.au/corporate/content.asp?doc=/content/00110544.htm

"I want to remind anyone who may be considering using wash sale arrangements to reduce their next tax bill that significant penalties can apply."

 

[drsmith]

http://www.ato.gov.au/corporate/content.asp?doc=/content/00110544.htm

"I want to remind anyone who may be considering using wash sale arrangements to reduce their next tax bill that significant penalties can apply."

Specific taxation alerts/rulings for further (in)digestion.

http://law.ato.gov.au/atolaw/view.htm?Docid=TPA/TA20087/NAT/ATO/00001

http://law.ato.gov.au/atolaw/view.h...T=99991231235958&recnum=3&tot=21&pn=RDB:::RDB

 

[craigj]

thanks for all the advice and valuable links on tax

guess i need to think more about how to reduce the capital gain

 

[jono1887]

what deductions are legit for trading/investing?
my laptop is being used to make a claim for the education tax refund (because i was in high school last year) am i also able to claim it as a tax deduction as well?

also my ipod touch, i only using it for stock quotes and trading when im at uni. I honestly dont use any of the video or music functions on it, just web browsing for news, the bloomberg app, and iphone comsec platform, would this be a legitimate deduction??

 

[beamstas]

what deductions are legit for trading/investing?
my laptop is being used to make a claim for the education tax refund (because i was in high school last year) am i also able to claim it as a tax deduction as well?

also my ipod touch, i only using it for stock quotes and trading when im at uni. I honestly dont use any of the video or music functions on it, just web browsing for news, the bloomberg app, and iphone comsec platform, would this be a legitimate deduction??

Jono, your ipod - highly doubt it

Even a computer as an example
You can't claim it 100% work, because it has soliataire and freecell on it etc. I really think you'd have a tough time claiming your ipod for trading.

Not sure if you'd get a split maybe 50 trading 50 pleasure, but i doubt it.. It's probably best to speak to an accountant who has dealt with this type of thing before.

Not sure if you can claim deductions for investing other than brokerage which will add to the cost base of any shares purchased.

 

[AMSH]

Beamstas,

It's not as bad as all that mate. There isn't much that you can't claim if it has a direct connection to the production of assessable income. I've had clients claim part of their Foxtel subscription for news, weather and business channels.

Jonno,

The best thing to do is get a good accountant (read reputable and professional). If you're going to be trading, a good accountant can save you a mint - from tax planning (appropriate corporate structures etc) to advice on what you should be claiming and on and on and on. They're a worthwhile investment.

You can still get a good mid-tier firm to do your return every year and their fees generally aren't a lot more than one of the franchised ones (HR Block etc).

I don't think you'll be able to do anything with the laptop as it's been associated with the tax offset (although i may be wrong). The ipod is a possibility. If you're using it solely for trading then in theory it should be valid (the fact it's got non-trading features is irrelevant; it's the purpose it's put to that matters); dependng on how much it cost, you might have to write it off over a number of years (depreciate it).
Note: the above paragraph is just my feeling on it, and not in any way concrete or advice - I used to be a tax analyst but I'm very rusty.

Cheers,

AMSH.

 

[jono1887]

Beamstas,

It's not as bad as all that mate. There isn't much that you can't claim if it has a direct connection to the production of assessable income. I've had clients claim part of their Foxtel subscription for news, weather and business channels.

Jonno,

The best thing to do is get a good accountant (read reputable and professional). If you're going to be trading, a good accountant can save you a mint - from tax planning (appropriate corporate structures etc) to advice on what you should be claiming and on and on and on. They're a worthwhile investment.

You can still get a good mid-tier firm to do your return every year and their fees generally aren't a lot more than one of the franchised ones (HR Block etc).

I don't think you'll be able to do anything with the laptop as it's been associated with the tax offset (although i may be wrong). The ipod is a possibility. If you're using it solely for trading then in theory it should be valid (the fact it's got non-trading features is irrelevant; it's the purpose it's put to that matters); dependng on how much it cost, you might have to write it off over a number of years (depreciate it).
Note: the above paragraph is just my feeling on it, and not in any way concrete or advice - I used to be a tax analyst but I'm very rusty.

Cheers,

AMSH.

ok, thanks... ill look into it further with an accountant.