Tax deductions for CFD trading

del444 · 19 November 2008

Been searching and reading through other posts in regards to tax implications of CFD trading.

For my question I will be taking the stance that I will be paying income tax on any profits made.

What could you use as deductions for CFD trading? Some I have thought of so far:

- Phone bill
- Internet Bill
- New computer
- One I am not sure about is; rent for room in a house or something along those lines?

Any other big ones?

Cheers

del444 · 19 November 2008

Another one:

- Foxtel/Austar to view the business channels?

Chorlton · 19 November 2008

wat17 said:
Been searching and reading through other posts in regards to tax implications of CFD trading.

For my question I will be taking the stance that I will be paying income tax on any profits made.

What could you use as deductions for CFD trading? Some I have thought of so far:

- Phone bill
- Internet Bill
- New computer
- One I am not sure about is; rent for room in a house or something along those lines?

Any other big ones?

Cheers

Others which "may" be included

1. Interest on any money which has been borrowed for trading purposes?
2. Software / Platform costs inc cost of data (if this wasn't supplied free) & Subscriptions.

Sidenote: Even though you probably already know this, how much one can deduct would be dependant on the % of time each item is directly associated to trading CFD's.

nikemi · 19 November 2008

Anything, as long as you can show a connection in the expense as being incurred in effort to produce you trading income. The only exclusion would be entertainment expenditure, even if trading etc was discussed at sustinence meeting.

Also i would be careful with deducting expenditure the non-deductable portion of which relates to your residential property eg % of interest paid on mortgage for study you use primarily for trading as CGT implication come into effect.

But anything else is allowable as long as you can show there is a connection.

NAsX · 21 November 2008

With regards to foxtel, say you installed it only for the business channels, however it comes with other channels in the basic package, would you still be able to claim the total price?

I guess in the end, it's only relevant if you end up with a positive year : Apart from giving yourself move capital loss to carry forward, I don't see any other advantage over claiming if you are in the red?

sam76 · 21 November 2008

coffee/milk and a portion of rent

Chorlton · 21 November 2008

NAsX said:
With regards to foxtel, say you installed it only for the business channels, however it comes with other channels in the basic package, would you still be able to claim the total price?

I guess in the end, it's only relevant if you end up with a positive year : Apart from giving yourself move capital loss to carry forward, I don't see any other advantage over claiming if you are in the red?

Personally (and this is only my view) I would be very surprised if you could actually claim FoxTel as a business expense. I know "technically" anything that contributes towards generating the income can be claimed but I'd be interested in how ATO treats this parttcular expense.

Assuming that it was "claimable", I very much doubt they would allow you to claim the full expense unless you could really prove that you only watched business related programmes, which is something that couldn't be proved or disproved.

NAsX · 1 December 2008

Just came across this article on CompareShares, on the exact subject, may be of interest.

http://compareshares.com.au/dunn32.php

|rockefeller| · 6 December 2008

Hi guys, I take it that all of the tax deductions discussed above would also relate to simple share trading, correct??

clayton4115 · 20 March 2010

so if you had a CFD loss this financial year and want to claim it as a tax deduction, which section of your taxpack would you put it under?

which item under deductions?

Tax deductions for CFD trading

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