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Tax accounting implications

Joined
Aug 9, 2016
Posts
79
Reactions
12
Hi all,

It's been a while since I actively traded. I spent a long time studying before jumping in and once I did I ended up spending more on my accountant that was worth my time and effort. Obviously if I had profited more then the accounting costs wouldn't have been an issue but sometimes you make a mistake and have to sell earlier than expected and deal with it.
Earlier this year (or maybe it was late last year) I decided to play more safely and bought some ETFs expecting to hold onto them longer term thinking I wouldn't get bitten by my accountant again but this was not long before COVID hit so once again I had to sell prematurely and once again my accountant makes more out of my trading than I do.

My plan was always to find a low cost broker like Interactive Brokers so I can trade fairly regularly taking small profits but it's just not feasible when it comes to accounting costs. Does it make more sense to trade longer term?
Just wondering if others have this same issue or is my accountant taking me for a ride? The main reason I stick with my accountant is because they do my rental taxes also which I just have no interest (or ability) to do myself.

Thanks,

Ty
 
Joined
May 22, 2020
Posts
1,276
Reactions
672
Hi all,

It's been a while since I actively traded. I spent a long time studying before jumping in and once I did I ended up spending more on my accountant that was worth my time and effort. Obviously if I had profited more then the accounting costs wouldn't have been an issue but sometimes you make a mistake and have to sell earlier than expected and deal with it.
Earlier this year (or maybe it was late last year) I decided to play more safely and bought some ETFs expecting to hold onto them longer term thinking I wouldn't get bitten by my accountant again but this was not long before COVID hit so once again I had to sell prematurely and once again my accountant makes more out of my trading than I do.

My plan was always to find a low cost broker like Interactive Brokers so I can trade fairly regularly taking small profits but it's just not feasible when it comes to accounting costs. Does it make more sense to trade longer term?
Just wondering if others have this same issue or is my accountant taking me for a ride? The main reason I stick with my accountant is because they do my rental taxes also which I just have no interest (or ability) to do myself.

Thanks,

Ty

If you trade CFDs, list yourself as a hobby trader, keep your trades to a minimum each year; then you don't have to pay any CGT on your trades. Double check with the ATO; and also you need to make sure that you know these financial products well before trading them.
 

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