ok, now that is interesting.......
What makes one a share trader vs. a share holder?
What am I?
Are you saying a share trader can claim capital losses against their regular joe income?
Yes, that is correct, as a share trader is in the business of trading, so their losses are deductible (subject to the non-commercial loss provisions).
Yes, that's correct. In effect, capital losses are quarantined against capital gains.Thanks Mr T.
So no matter how much you are taxed on your salary, you can't offset any capital losses.
....and capital losses can only be used to offset capital gains.
So in affect you can't "claim" capital losses.......no matter how substantial.
Apart from against capital gains.
ok, now that is interesting.......
What makes one a share trader vs. a share holder?
What am I?
Are you saying a share trader can claim capital losses against their regular joe income?
Yes, that's correct. In effect, capital losses are quarantined against capital gains.
If capital losses are carried forward, there is no time limit. You can carry them forward till you use them up.
Mr_T, do you know whether you can claim back CGT paid on past profit years against current financial years losses?
There is no scientific formula, need to look at all the facts, especially the frequency and volume of transactions.
For a share trader, their shares are their trading stock. So their losses are not "capital losses", rather they are just plain losses, analogous to a situation that if a hardware store you owned as a sole proprietor made a loss.
My situation is I have roughly a 60k profit for 07/08, but have losses 3-4 times that. The losses came from frequent trading, high volumes, resulting signifigant losses (not to mention stupidity)
Thanks for your help Mr T. It really is appreciated.
Re - "their shares are their trading stock"
What does this mean?
Do you qualify as a trader (by having to have an ABN or something like that)? Which I don't
My situation is I have roughly a 60k profit for 07/08, but have losses 3-4 times that. The losses came from frequent trading, high volumes, resulting signifigant losses (not to mention stupidity)
I also have a salary (regular job - not related to trading)
Hope this helps.
For a share investor, the shares are their capital. But for a share trader, the shares are their trading stock. Just like for a supermarket, its food & other goods are its trading stock, for a share trader the shares are the trading stock, as they are constantly bought and sold. What an accountant would call inventory, a tax person calls trading stock.
Having an ABN doesn't make you a trader. But if you are a trader, you should have an ABN, though if you don't have one, it won't stop you being a trader. Just that all businesses need to have an ABN. But lets get the causation straight: it's that a business should have an ABN, it's not that having an ABN makes you into a business.
Whether you are a trader or investor depends on the specific facts of your case, it is possible that you are a trader given your frequency.
If you wish to offset share losses against income such as salary, there are 2 hurdles you need to jump:
a) Show that you are a share trader, not just an investor (ie that you are in the business of trading shares);
AND (ie you need both hurdles)
Must show that the requirements of Div 35 of the Income Tax Assessment Act 1997 are fulfilled.
Div 35 will be relevant to ANY business that makes a loss, including one of "share trading". Basically, it says that a business can't use its loss to offset other income (such as salary income) unless fulfil at least one of following:
a) The business have made $20,000 in income (if you sold $20,000 in your share trading business, this would be fulfilled).
b) You made a profit for at least 3 of the last 5 financial year (including the current one) from your business
c) The business utilised real esate that costed at least $50K
d) the business utilisied depreciating assets and trading stock (which here would include shares, as they are trading stock) of at least 100K.
Well I bought into BNB today
Yes i may be insane
i chased it up and down Paid $7:20
NOTE :
Commsec, Etrade sites jammed up on the BNB market depth
So no one could trade for around 15 to 20 mins
Did any one else notice ??
Guess pannick set in and it was smashed again and went to 6.80
Well as a new BNB owner
After reading all your postings maybe i should not of purchased this bargain ?
Well i have decided to throw a life jacket on for the morning trade
And will promtly jump the BNB ship if the price fails in morn trade
As will thousands of other small and large punters
if some of your dire predicions on this page come true
Another interesting day for BNB, I wonder if there might be a take-over at these low prices?
A rating downgrade would be disastrous for BNB, especially if they fall off the BBB range. This would put them into junk territory as far as debt goes.
I held this stock a while back at $21, and sold at $16 when it looked like a trend. I am astounded to what the short-sellers are doing.
a) The business have made $20,000 in income (if you sold $20,000 in your share trading business, this would be fulfilled).
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