Is 'record keeping' a good enough excuse?
Is 'record keeping' a good enough excuse?
Are textbooks for an economics degree tax deductable for share trading based on 'self-education'??
Are textbooks for an economics degree tax deductable for share trading based on 'self-education'??
Wasn't there a case a couple of months ago where someone on Youth Allowance was able to claim quite a decent amount for text books?
I remember it was in the news media and we did discuss it.
I once got away with claiming the expenses of my dog, i.e. the purchase cost of the dog (substantial), all the vet treatment and food etc for a year, on the basis that she was protection for the drugs I was keeping in the car and in my home.
It must have been a different person doing the assessments the following year, because it didn't work twice.
Are textbooks for an economics degree tax deductable for share trading based on 'self-education'??
Textbooks for an economics degree are not deductible unless this degree relates to your current employment, and where the education will further your employment (eg. increase in salary). If this is so, then the textbooks will be deductible.
In etax, sections D4, D5
it specifies 'work as an employee'
---is employment classified as self-employed trader?
:. deductions such as; computer, books, software
or am i missing another section.
thanks
Textbooks for an economics degree are not deductible unless this degree relates to your current employment, and where the education will further your employment (eg. increase in salary). If this is so, then the textbooks will be deductible.
Well, im assuming that increasing my education of the economy, finance systems ect ect will be able to further increase my income from share trading in the future... so would they be considered tax deductable?
So how do I fill up my tax return?
Do I put the profits from my trades under normal income? or capital gains?
And how do deductions work? I know theres a place where I write in the total deduction. But do I mail in my reciepts as well? And where do I write the reason for each deduction?
So how do I fill up my tax return?
Do I put the profits from my trades under normal income? or capital gains?
And how do deductions work? I know theres a place where I write in the total deduction. But do I mail in my reciepts as well? And where do I write the reason for each deduction?
Jono,
What are you making in your normal income and what are you pulling from trading, give us a clearer picture, although i'm not a tax specialist i may be able to help you out with a suggestion to take to your tax agent.
As far as expenses go i normally run a spreadsheet detailing everything to take to my accountant, i store all receipts in case i receive an audit.
Personally it sounds like you may not be classified as a trader.
Text Books:
You can claim if they are courses which will further your ability to obtain work in that specific field. Because you're self employed may be a little difficult considering you aren't a professional, just a trader.
Brokerage Fees
No.
Ok, well I've only made 16 trades (32 buy and sell transactions) since I started in Nov. Average trade was 10k and made an average of 10% per trade that were held for anywhere between 1-5 weeks. Made a total of 16k from trades, 1k from interest in various accounts and term deposits and $800 from real work [pizza delivery]...
The deductions that I want to make are photocopying, ink, economics text books (for econ degree - as it will 'increase my income in the furture') and my ipod touch - which I use to monitor stocks and make trades when I'm in uni.
I agree with Cutz and Krusty, you would be using CGT for your share trading; to me your trades were still only investments, if you were a trader then their would be more trades and you would not be holding onto the assets for as long as you have.
IPod- Yes: but only a prercentage. You can only claim the amount you used for trading stocks, you cannot claim all of it as (I'm guessing) you used it for listening to music etc. their for you cannot claim your private use of an asset. Also you cannot claim the cost of purchase of the IPod, as it is an asset, you must claim the depreciation of the asset; however if you are renting etc. you can claim your repayments of an asset.
Textbooks- No: Your not a proffesional trader or have a current job in trading; therefore this degree at the end of the day may allow you to obtain employment in this area, and therefore you cannot claim any fees that are relted to this course.
Hope I helped
Example 1 – Share trader
Molly is an electrical engineer. After seeing a television program, Molly decides to become involved in share trading activities.
Molly sets up an office in one of the rooms in her house. She has a computer and access to the internet.
Molly has $100,000 of her own funds available to purchase shares and, in addition, she has access to a $50,000 borrowing facility through her bank.
Molly conducts daily analysis and assessment of developments in equity markets. The resources she uses include financial newspapers, investment magazines and stock market reports. Molly's objective is to identify stocks that will increase in value in the short term to enable her to sell at a profit after holding them for a brief period.
In the year ended 30 June 2001, Molly conducted 60 share transactions: 35 buying and 25 selling. The average buying transaction involved 500 shares and the average cost was $1,000. The average selling transaction involved 750 shares and the average selling price was $1,800. All the transactions were conducted through stockbroking facilities on the internet. The average time that Molly held shares before selling them was twelve weeks. Molly's activities resulted in a loss of $5,000 after expenses.
Molly's activities show all the factors that would be expected from a person carrying on a business. Her share trading operation demonstrates a profit making intention even though a loss has resulted. Molly’s activities are regular and repetitive, and they are organised in a business-like manner. The volume of shares turned over is high and Molly has injected a large amount of capital into the operation.
Example 2 – Share holder
George is an accountant. He has bought 200,000 shares in twenty ‘blue chip’ companies over several years. His total portfolio cost $1.5 million. George bought the shares because of consistently high dividends. He would not consider selling shares unless their price appreciated markedly before selling them. In the year ended 30 June 2001, he sold 20,000 shares over the year for a gain of $50,000
Although George has made a large gain on the sale of shares, he would not be considered to be carrying on a business of share trading. He has purchased his shares for the purpose of gaining dividend income rather than making a profit from buying and selling shares.
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