Can I claim brokerage fee back?
- Thread starter overule
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Re: Can i claim brokerage fee back ?
From the ATO website
So brokerage fees arent tax deductible on their own, but when you sell your shares, you take the cost of buying and selling the shares off your capital gain, thats how i read it.
From the ATO website
So brokerage fees arent tax deductible on their own, but when you sell your shares, you take the cost of buying and selling the shares off your capital gain, thats how i read it.
Nyden
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Re: Can i claim brokerage fee back ?
But, if you've traded (I assume, sold?) You'll have capital gains to declare - you can offset brokerage against CGT. That's of course...assuming you've made at least some gains in these 100+ transactions
But, if you've traded (I assume, sold?) You'll have capital gains to declare - you can offset brokerage against CGT. That's of course...assuming you've made at least some gains in these 100+ transactions
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Re: Can i claim brokerage fee back ?
So that's right about brokerage forming cost base for CGT....just on deciding to be a 'share trader' for ATO, it may have its advantages in having brokerage deductible, but your trading gains cease to be Capital gains and become ordinary income........that means you give up all the nice CGT concessions as well.....it's a serious decision to become a 'share trader' for ATO and should be given much thought......you should of course seek your own professional advice and blah, blah...hehe
So that's right about brokerage forming cost base for CGT....just on deciding to be a 'share trader' for ATO, it may have its advantages in having brokerage deductible, but your trading gains cease to be Capital gains and become ordinary income........that means you give up all the nice CGT concessions as well.....it's a serious decision to become a 'share trader' for ATO and should be given much thought......you should of course seek your own professional advice and blah, blah...hehe
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Re: Can i claim brokerage fee back ?
As a pro trader, your trades may be considered income, however is a pro trader allowed to have investments, with profits classed as Capital Gains?
As a pro trader, your trades may be considered income, however is a pro trader allowed to have investments, with profits classed as Capital Gains?
Re: Can i claim brokerage fee back ?
What are those nice CGT concessions ? and yes i made capital gains most of the time.
What are those nice CGT concessions ? and yes i made capital gains most of the time.
Nyden
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Re: Can i claim brokerage fee back ?
12-month CGT 50% reduction, the ability to keep capital losses over many years; and as far as I know - being a professional trader (as a business); you need to declare increase in value as well? Not too sure on that though, maybe that's just business-holdings.
Being a professional trader applies all gains to income tax rates - and if you have a particularly good year; you'll be taxed at obviously higher rates.
12-month CGT 50% reduction, the ability to keep capital losses over many years; and as far as I know - being a professional trader (as a business); you need to declare increase in value as well? Not too sure on that though, maybe that's just business-holdings.
Being a professional trader applies all gains to income tax rates - and if you have a particularly good year; you'll be taxed at obviously higher rates.
Re: Can i claim brokerage fee back ?
Yes. You can claim back brokerage and transaction fees.
Yes. You can claim back brokerage and transaction fees.
Nyden
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Re: Can i claim brokerage fee back ?
Well, I'm not sure to be honest - but, look at it this way.
There's essentially no advantage to being a professional gambler, as you pay tax on your winnings. But being a 'punter' - is tax free!
I guess being able to declare brokerage is an advantage - not to mention all the other "rubbish" you could claim
A trip across the world to research a stock, a laptop and wifi internet connection to monitor & trade on the go... You could declare the cost of trading programs, subscriptions, in theory - a whole bunch of stuff. Training seminars...the list goes on.
(At least, I believe this to be the case! Ask the ATO first)
Well, I'm not sure to be honest - but, look at it this way.
There's essentially no advantage to being a professional gambler, as you pay tax on your winnings. But being a 'punter' - is tax free!
I guess being able to declare brokerage is an advantage - not to mention all the other "rubbish" you could claim
A trip across the world to research a stock, a laptop and wifi internet connection to monitor & trade on the go... You could declare the cost of trading programs, subscriptions, in theory - a whole bunch of stuff. Training seminars...the list goes on.
(At least, I believe this to be the case! Ask the ATO first
)
So_Cynical
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Re: Can i claim brokerage fee back ?
LOL ya gota love self assessment. Ive always claimed as an expense.:
LOL ya gota love self assessment.
Ive always claimed as an expense.:Re: Can i claim brokerage fee back ?
So the conclusion of this thread is that i can claim brokerage fees.
Alright. Thanks guys
Just before that, are there any special requirement or is it as easy as filling all these brokerage fees as expenses when doing tax returns ?
cheers again.
So the conclusion of this thread is that i can claim brokerage fees.
Alright. Thanks guys
Just before that, are there any special requirement or is it as easy as filling all these brokerage fees as expenses when doing tax returns ?
cheers again.
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Re: Can i claim brokerage fee back ?
I would see an accountant about this. What may be right for one person may not be right for you.
Ther are pros and cons with being a pro trader and without your financial status being laid bare to an FA, no one here can tell you whats best to do, whether to claim it or not.
I would see an accountant about this. What may be right for one person may not be right for you.
Ther are pros and cons with being a pro trader and without your financial status being laid bare to an FA, no one here can tell you whats best to do, whether to claim it or not.
Re: Can i claim brokerage fee back ?
Hi mate,
The broker fees are added to the cost base of your shares. When you ultimately sell the share your capital gain will be calculated as the amount you recieved on the sale of the share minus 1) the cost u paid for the share and 2) any incidental expenses in relation to the share (ie brokerage).
Remember if u hold the share on capital account for longer than 12months you are entitled to a 50% discount on your tax liability on that sale so consider this when deciding whether you should consider yourself "in the business of trading shares" and have the gain on revenue account (as you will not be entitled to the discount).
In either case you will effectively get the deduction, its just a matter of timing.
I would always prefer the shares to be held on capital account, however this is my opinion and I have other reasons, however everyones situation is different. DYOR.
Cheers
Hi mate,
The broker fees are added to the cost base of your shares. When you ultimately sell the share your capital gain will be calculated as the amount you recieved on the sale of the share minus 1) the cost u paid for the share and 2) any incidental expenses in relation to the share (ie brokerage).
Remember if u hold the share on capital account for longer than 12months you are entitled to a 50% discount on your tax liability on that sale so consider this when deciding whether you should consider yourself "in the business of trading shares" and have the gain on revenue account (as you will not be entitled to the discount).
In either case you will effectively get the deduction, its just a matter of timing.
I would always prefer the shares to be held on capital account, however this is my opinion and I have other reasons, however everyones situation is different. DYOR.
Cheers
Re: Can i claim brokerage fee back ?
I would seriously recommend seeking professional advice before making this move as reversing your position may not be so easy. Think about the shares you hold 10 years from now, if you find yourself having massive unrealised profits and decide to sell you may not have access to discounts available and be liable for some massive tax payable. (on the other hand holding on capital account you'll recieve a 50% discount). I am of the opinion that if you are classed as "in the business of trading", then its all in as revenue - you do not have a choice whether you hold shares on capital or revenue account.
Keep in mind that if u hold the shares on capital account, the brokerage gets added to the cost base of the shares and will effectively reduce tax payable on disposal of the shares. This is the equivalent of taking an outright deduction, however you get the benefit at sale, not at purchase.
So the conclusion of this thread is that i can claim brokerage fees.
Alright. Thanks guys
Just before that, are there any special requirement or is it as easy as filling all these brokerage fees as expenses when doing tax returns ?
cheers again.
I would seriously recommend seeking professional advice before making this move as reversing your position may not be so easy. Think about the shares you hold 10 years from now, if you find yourself having massive unrealised profits and decide to sell you may not have access to discounts available and be liable for some massive tax payable. (on the other hand holding on capital account you'll recieve a 50% discount). I am of the opinion that if you are classed as "in the business of trading", then its all in as revenue - you do not have a choice whether you hold shares on capital or revenue account.
Keep in mind that if u hold the shares on capital account, the brokerage gets added to the cost base of the shares and will effectively reduce tax payable on disposal of the shares. This is the equivalent of taking an outright deduction, however you get the benefit at sale, not at purchase.
Re: Can i claim brokerage fee back ?
Hehe mate, if the tax man has a look at you and you claim the 50% discount capital gains you'll be in for a very nice suprise Alot of extra tax payable 
LOL ya gota love self assessment.
Hehe mate, if the tax man has a look at you and you claim the 50% discount capital gains you'll be in for a very nice suprise
Alot of extra tax payable 
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Re: Can i claim brokerage fee back ?
Well if you are regularly selling the shares your accountant would be claiming the deduction as part of the cost base anyway.
So the only way it would help you would be if you were hanging onto the shares for a few years but you got to claim the brokerage back in the first year,..... But then because you are a trader if you did hold it longer than a year you would not get the 50% CGT discount and if you held it for serveral years you would have to pay tax every year as the shares rose in value
Well if you are regularly selling the shares your accountant would be claiming the deduction as part of the cost base anyway.
So the only way it would help you would be if you were hanging onto the shares for a few years but you got to claim the brokerage back in the first year,..... But then because you are a trader if you did hold it longer than a year you would not get the 50% CGT discount and if you held it for serveral years you would have to pay tax every year as the shares rose in value
