45 days rule on instalment warrant

[Fab]

I am new to instalment warrant and my understanding is that as long as you keep a warrant more than 45 days then you can benefit of the franking credit if over $5000. My question is what happens if you are over the $5000 limit and you have sold 1 instalment warrant before the 45 days and the rest after ?

Does that mean you are only untitled to the franking credit of the one over or none of them are eligible ?

I hope this question makes sense .

 

[RodC]

My understanding is that if you're over the $5000 franking credit limit then you will lose the credits for those warrants/shares held for less than 45 days.

You are still entitled to the credit for those held for more than 45 days.

regards,

Rod.

 

[rhmt01]

oh and remember the LIFO rule (Last in first out).

Buy 10,000 ABC 50 days ago...
Buy 10,000 ABC 5 days ago...

Sell 10,000 ABC now.

It is taken that the 10,000 ABC bought 5 days ago was sold, not the 10,000 bought 50 days ago. And its actually 47 days... I wish they actually called it the 47 day rule!

Oh... And its 90+2 (92) day rule for preference shares.

I guess with warrants you can get away with trading it as you can actually point to the ASX code and say... I am selling the lot I bought 50 days ago.

Ie.
Bought 10,000 ABCIMA 50 days ago
Bought 10,000 ABCIMB 5 days ago

Sell 10,000 ABCIMA.

I've found buying a put instead of selling it (when it gets to the price you want to sell it) to get your 47 day works.

Firstly you get your franking credits, and secondly you can claim the loss on your put options!

(although someone needs to explain the 'at risk' rule - where delta is less than 0.30)
I have a positive delta of 1, but a negative delta of 0.