Borrowed money for ETF, where to put in tax form?

[Tradestation]

Hi all, I'm filling in the tax return but I'm a bit stumped. I incurred $7000 in interest for money I borrowed to buy EFTs as long term investment. (STW)

Distributions were put in section 13 since they are not called dividends.

Now when I get to D8 , dividends deductions, etax tells me I showed no income from dividends.

What section do I put this expense in?

Thanks

 

[burglar]

Re: Borrowed money for EFT, where to put in tax form?

... I incurred $7000 in interest ...

What section do I put this expense ...

I see you have had no response, so let me say this.

I believe you can claim deductions as an offset against your Capital Gains.
You will have needed a CGT event (Sale) and use the Supplementary Tax Return.

 

[PinkGirl]

Hi all, I'm filling in the tax return but I'm a bit stumped. I incurred $7000 in interest for money I borrowed to buy EFTs as long term investment. (STW)

Distributions were put in section 13 since they are not called dividends.

Now when I get to D8 , dividends deductions, etax tells me I showed no income from dividends.

What section do I put this expense in?

Thanks

Speak to an accountant or tax advisor but a hint is to read item 13Y of the tax return instructions

 

[lusk]

Distribution/dividend isn't that the same thing?

Dividends
Dividends for withholding tax purposes include:

any distribution made by a company to any of its shareholders in the form of money or other property

any amount credited by a company to any of its shareholders

the return on all equity interests, including non-share dividends. However, they do not include dividends paid for non-equity shares that are subject to interest withholding tax.

 

[Judd]

Distribution/dividend isn't that the same thing?

Dividends
Dividends for withholding tax purposes include:

any distribution made by a company to any of its shareholders in the form of money or other property

any amount credited by a company to any of its shareholders

the return on all equity interests, including non-share dividends. However, they do not include dividends paid for non-equity shares that are subject to interest withholding tax.

Regarding my underline. Possibly not.

Distributions from managed funds, eg, STW or a number of other ETFs, are to be included in the tax return for the year in which they are incurred whereas dividends are included in the tax return for the year in which they are received.

However, not all EFTs are the same in this regard and sometimes the assistance of an accountant may be needed and hope they know what is what or resorting to reading the taxation section in the ETF prospectus. If necessary, ask the ATO.

As to the original question, I'm not able to help. Haven't had any form of loan for years and I've actually forgotten the relevant aspects for tax returns.