Australian (ASX) Stock Market Forum

Tax Question: CGT discount and CFDs/Stocks

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Curious on the tax implications of the following -

If I have traded a few shares in the past year (to reduce my losses on most of them)... as well as held a few other shares, do I still get the CGT discount on the shares I have held for >1year?

Further to this, I have also been trading some CFD's but only day trades - again, does this affect my ability to claim the CGT discount on the other lot of shares?

Basically, I am concerned that the ATO might consider me a 'trader' - which I definitely am not...

Anyway, any input?

Cheers!
 

pixel

DIY Trader
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Curious on the tax implications of the following -

If I have traded a few shares in the past year (to reduce my losses on most of them)... as well as held a few other shares, do I still get the CGT discount on the shares I have held for >1year?
I'm pretty sure that the >1year rule applies to everybody.

Further to this, I have also been trading some CFD's but only day trades - again, does this affect my ability to claim the CGT discount on the other lot of shares?

Basically, I am concerned that the ATO might consider me a 'trader' - which I definitely am not...

Anyway, any input?

Cheers!
Try this link: http://www.stockwatch.com.au/articles/derivatives/cfds/cfd-tax.aspx
If you can't find your answer there, you better check with an experienced accountant, which I am not.
 

skc

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Basically, I am concerned that the ATO might consider me a 'trader' - which I definitely am not...
Traders are still allowed to hold investments. But it gets a little complicated so best speak with your own tax guy/gal.
 
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Hello,

I have another question: if i invest in foreign market (like USA or Poland) and i hold it for more then 12 months, do i have 50% discount of CGT ?

And one more:
if company from Luxemburg (which invest on world futures market) transfers profit (dywidend) from investment to my australian company (Australian company has only 20% shares of Luxemburg company), do i need to pay 30% tax in AU ? (Is it depend if I'm a resident?)
 
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If the ATO classifies you as a trader, you can still hold investments for capital gain as well. But it needs to be very well documented and proven as such that it is seperate from your trading business.
You won't get any help on a forum for tax related issues like this, there is too many variables involved, you really need to talk to your tax man/accountant.
 
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Hello,

I have another question: if i invest in foreign market (like USA or Poland) and i hold it for more then 12 months, do i have 50% discount of CGT ?
Yes.

And one more:
if company from Luxemburg (which invest on world futures market) transfers profit (dywidend) from investment to my australian company (Australian company has only 20% shares of Luxemburg company), do i need to pay 30% tax in AU ? (Is it depend if I'm a resident?)
This is a big can of worms you're opening. Depending on the nature of the relationship between you (as an individual, not the AU company) and the company in Luxembourg you may find the ATO will look through the structure and send you a tax bill based on the entire profit of the company in Luxembourg. It is pretty unlikely they will just tax the AU company based on dividends from the Lux company. You can't use a corporate structure in a low/no taxation domicile to avoid paying tax in Australia. That's one of the oldest tricks in the book and they slammed it shut years ago.

You need a good accountant. Don't rely on forums for this sort of stuff.
 
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