Australian (ASX) Stock Market Forum

Selling stock vs. tax

vil

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Hi folks, I'm a newbie here and I have a question. What do I do with stock that went from 90cents to $12 in a course of few years. It's a risky stock and I was thinking of selling it all and buying blue chips instead but not sure if that's the best course of action. I'd be quite happy paying tax at the sale but I don't know if you can do that and if I get hit with it at the end of financial year, it would be quite a lot of money to pay. So what do experienced traders do. Just to say I'm not a daily trader. Not sure if this all makes sense to anybody. If you can hint me with advice I'd be grateful. Thanks
 
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Ninety cents to twelve bucks ! Wow, that's a ten bagger, right there.
Everybody here is dying to know its name, now.
It might not be all that risky , today ,if someone's willing to pay $12 for it.
 

Sean K

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Hi folks, I'm a newbie here and I have a question. What do I do with stock that went from 90cents to $12 in a course of few years. It's a risky stock and I was thinking of selling it all and buying blue chips instead but not sure if that's the best course of action. I'd be quite happy paying tax at the sale but I don't know if you can do that and if I get hit with it at the end of financial year, it would be quite a lot of money to pay. So what do experienced traders do. Just to say I'm not a daily trader. Not sure if this all makes sense to anybody. If you can hint me with advice I'd be grateful. Thanks

Sounds like a good win, nice work. For me it would be CGT at the EOY offsetting all the tax losses... Without your full financial situation it's hard to tell and no one here can give you detailed financial advice anyway. If you use an accountant for your yearly tax return they'd probably be happy to receive an email from you outlining the issue and you should get some advice FOC, or ask you to come in for a chat. Would be worth it to get the right advice by the sound of it.
 
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Hi folks, I'm a newbie here and I have a question. What do I do with stock that went from 90cents to $12 in a course of few years. It's a risky stock and I was thinking of selling it all and buying blue chips instead but not sure if that's the best course of action. I'd be quite happy paying tax at the sale but I don't know if you can do that and if I get hit with it at the end of financial year, it would be quite a lot of money to pay. So what do experienced traders do. Just to say I'm not a daily trader. Not sure if this all makes sense to anybody. If you can hint me with advice I'd be grateful. Thanks
not an accountant, so look for professional advise but if you sell now, indeed you will have CGT
but if shares held for more than a year, you qualify to a discount so pay CGT on only half of your profit.
we are coming toward the end of the year, you should have a rough idea of your income for this FY and current capital gain if any, check what your tax income is , your expected taxation rate and see if you can sell all your portfolio or only part to ensure limited tax hit; even better (kind of) if you have some capital losses to offset
in any case, you will not have to pay your taxes until end of year or may if going thru an agent may 24 ; if you allocate that tax amount in a saving account till then at 4%, get a bit of extra coins with that before paying the tax man.I hope this does not qualify as financial advice?
 
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As we all must say, I'm not an accountant so get professional advice because this isn't.

If in your name, CGT is halved if held over 12 months.
Taking above into account, sell it when you think it should be sold. Holding for tax reasons can be expensive if its price drops. Vice versa?
CGT is only payable when sold, not on its value at the end of FY. Maybe payable in the May (as Frog said) following the EOFY of the sale.

You can also look on the ATO site for more info.
 
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Hi folks, I'm a newbie here and I have a question. What do I do with stock that went from 90cents to $12 in a course of few years. It's a risky stock and I was thinking of selling it all and buying blue chips instead but not sure if that's the best course of action. I'd be quite happy paying tax at the sale but I don't know if you can do that and if I get hit with it at the end of financial year, it would be quite a lot of money to pay. So what do experienced traders do. Just to say I'm not a daily trader. Not sure if this all makes sense to anybody. If you can hint me with advice I'd be grateful. Thanks
a very nice gain , well done

but sell ALL of that stock ??

do you think the company is headed for a fall ( say taking a direction where you feel uncomfortable , .. happens to me from time to time )

since you seem to be in retirement phase , one rarely discussed topic is income ( divs. return on investment outlay )
let's take one winner i have .. GRR now my average buying price is 20.3 cents

recent divs are ( i have held them over 10 years and have been a reasonably regular payer

GRRGRANGE RESOURCES. ORDINARY

Balance DateDividend TypeCents per shareCcyFranked %Ex-Dividend DateBooks Close DatePay Date
31/12/2022Final2.000AUD100.0010/03/202313/03/202328/03/2023
30/06/2022Interim2.000AUD100.0013/09/202214/09/202230/09/2022
31/12/2021Final10.000AUD100.0011/03/202214/03/202229/03/2022
30/06/2021Special10.000AUD100.0015/12/202116/12/202129/12/2021
30/06/2021Interim2.000AUD100.0013/09/202114/09/202130/09/2021
31/12/2020Final2.000AUD100.0012/03/202115/03/202130/03/2021
30/06/2020Interim1.000AUD100.0011/09/202014/09/202030/09/2020
31/12/2019Final1.000AUD100.0013/03/202016/03/202030/03/2020
30/06/2019Interim1.000AUD100.0010/09/201911/09/201927/09/2019
31/12/2018Final1.000AUD100.0014/03/201915/03/201929/03/2019


the next thing to consider is not all 'blue chips' are premium companies some just have a lot of cash invested in them ( and a fan-club of fund managers and analysts )

take two stocks i do not hold CSL and CBA if you bought them at float ( IPO ) they are still fantastic earners for you , however if bought in early ( before March ) 2020 not so nice an income , but some income just the same

you should have a solid background in math having trained as an engineer , make that training become an asset for you now ( just don't automatically trust the given data , sometimes it can be rather stale )

PS ... ALL investing involves risk

take care
 
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Hi folks, I'm a newbie here and I have a question. What do I do with stock that went from 90cents to $12 in a course of few years. It's a risky stock and I was thinking of selling it all and buying blue chips instead but not sure if that's the best course of action. I'd be quite happy paying tax at the sale but I don't know if you can do that and if I get hit with it at the end of financial year, it would be quite a lot of money to pay. So what do experienced traders do. Just to say I'm not a daily trader. Not sure if this all makes sense to anybody. If you can hint me with advice I'd be grateful. Thanks
Good evening vil, what a magnificent paper profit.
All good sound adive from those that know.
But I thing,to remember is that it's your moolah(paoer profit) gained is from your hard earned and only you can make that decision to sell the 100% or break it into parcels spread over perhaps 2 financial years.
Best bet seek the avice of a finacial guru with a sound history of the stock market for proper advice.
As always though, DYOR Do Your Own Research.
Oh by the way, let us in on the secret stock. Many eyes are awaiting on your response.
Best of luck on whatever decision you decide on.
 

vil

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not an accountant, so look for professional advise but if you sell now, indeed you will have CGT
but if shares held for more than a year, you qualify to a discount so pay CGT on only half of your profit.
we are coming toward the end of the year, you should have a rough idea of your income for this FY and current capital gain if any, check what your tax income is , your expected taxation rate and see if you can sell all your portfolio or only part to ensure limited tax hit; even better (kind of) if you have some capital losses to offset
in any case, you will not have to pay your taxes until end of year or may if going thru an agent may 24 ; if you allocate that tax amount in a saving account till then at 4%, get a bit of extra coins with that before paying the tax man.I hope this does not qualify as financial advice?
Thanks Qldfrog, that’s great. Yes I do hold them for more than a year. I also have capital losses so it may be possibe offsetting. I was going to see my taxman about this anyway but thought checking this site first.
 

vil

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Thanks heaps everyone. I keep buying stock for past 20 years but I still feel I'm a bit of a noob when it comes to financial tricks. Ok, I come out. The stock I'm talking about is OCL. I actually bought heaps when it was still 60cents then just kept topping up as it went to 90cents. Believe or not it was up at over $20!!! at some point and silly me I didn't sell it.
 

Dona Ferentes

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Thanks heaps everyone. I keep buying stock for past 20 years but I still feel I'm a bit of a noob when it comes to financial tricks. Ok, I come out. The stock I'm talking about is OCL. I actually bought heaps when it was still 60cents then just kept topping up as it went to 90cents. Believe or not it was up at over $20!!! at some point and silly me I didn't sell it.
Interesting, and we'll done... if you search the specific OCL thread, there's a bit of narrative going. It's not a company that's going broke, but there are some holders that have sold on valuation.
 

vil

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Thanks Dona, just went through those posts...interesting. OCL has released "buy back notification"...so I'm thinking wait and see what happens. Looks like they might try increasing value of their stocks....? Has anyone gone through similar in the past?
 
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Thanks Dona, just went through those posts...interesting. OCL has released "buy back notification"...so I'm thinking wait and see what happens. Looks like they might try increasing value of their stocks....? Has anyone gone through similar in the past?
have mixed feelings on share buy-backs

in general ( to me ) it signals a company can't find a sustainable use for that capital

others of course love them
 

So_Cynical

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Thanks Dona, just went through those posts...interesting. OCL has released "buy back notification"...so I'm thinking wait and see what happens. Looks like they might try increasing value of their stocks....? Has anyone gone through similar in the past?
The tech bubble along with most of the other bubbles has burst - buy backs etc are mostly irrelevant.
 
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