CFD Trading Loss
- Thread starter nekminit
- Start date
- Joined
- 28 January 2009
- Posts
- 235
- Reactions
- 1
From memory if your turnover is greater than 20K you are able to deduct any losses against your other income. You have to qualify as a trader not an investor. Not sure what the criteria was but i was averaging 60 trades per day at some stage so qualifying as a trader was not an issue. I've been doing it trough accountant.
- Joined
- 2 February 2014
- Posts
- 44
- Reactions
- 0
My experience has been contrary to Avion's. Regardless of turnover I was never able to deduct trading losses against other income. :'(
Let us know what your accountant says.
Let us know what your accountant says.
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
CFD trading is never considered capital gains, so there is no other place for it but be treated as income (unless you somehow managed to qualify it as casual game of chance). So on the same logic I would say losses should be treated equally. However I am no accoutant and I've never had a period of net loss to report...
- Joined
- 25 February 2011
- Posts
- 5,685
- Reactions
- 1,218
Did your accountant/tax adviser give due consideration to the following ruling?http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~financial~basic~exact:::AND~spread~basic~exact:::AND~betting~basic~exact:::AND~contract~basic~exact&target=EA&style=java&sdocid=TXR/TR200515/NAT/ATO/00001&recStart=1&PiT=99991231235958&Archived=false&recnum=12&tot=15&pn=ALL:::ALL
- Joined
- 2 February 2014
- Posts
- 44
- Reactions
- 0
Maybe? I'm not him, so... I don't know. You can ask him if you like.
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,331
That is a serious loss nekminit!!
Couple of questions:-
How are you coping with that psychologically? (I assume to lose that much, you had a large Bank balance to start with?)
What "product" did you lose it on (Stocks, Futures, Forex?)
What was the main reason for the losses in your opinion .. ie. lack of trading skill; bad luck; don't know.
For tax purposes, did you happen to make a profit in any preceding years prior to the loss as that may work in your favour ... although with CFD's I'm not sure.
Hope it works out ok for you ..... makes my 75K loss a few years back look like a drop in the ocean
That is a serious loss nekminit!!
Couple of questions:-
How are you coping with that psychologically? (I assume to lose that much, you had a large Bank balance to start with?)
What "product" did you lose it on (Stocks, Futures, Forex?)
What was the main reason for the losses in your opinion .. ie. lack of trading skill; bad luck; don't know.
For tax purposes, did you happen to make a profit in any preceding years prior to the loss as that may work in your favour ... although with CFD's I'm not sure.
Hope it works out ok for you ..... makes my 75K loss a few years back look like a drop in the ocean
Started end of day trading back in 2010 with capital of $50k.
Trading US stocks,JAP stocks,AU Stocks & futures only.
Fast forward almost 4 years my account balance was $1.92m last 3 months taken a loss of $476k nothing has changed in my trading the markets can be a beast at times.
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,331
Whoah!
Your Accountant is your best friend ...... If you made that kind of profit and obviously traded a reasonably high volume, you would generally be considered a professional trader by the Tax department.
If so, your current losses should be deductable from your Tax return ... although you would have had to inform the TD of your original gains (and paid Tax on them) to get Pro-Trader status.
Only speaking from my own experience and that was with a Commsec account (not CFD's). A good Accountant should sort it out (favourably) for you, especially if you are still earning a decent income.
Cheers.
Did you mean you traded CFD's all 4 years ? With IG markets all the time ? And only lost this year ?
But honestly if you're been trading for 4 years and now into the millions and have not worked out all the tax issues beforehand you need to work on your trading "business" (not your trading skills..assuming no capital deposits you've made like almost 1000% return per year)
But honestly if you're been trading for 4 years and now into the millions and have not worked out all the tax issues beforehand you need to work on your trading "business" (not your trading skills..assuming no capital deposits you've made like almost 1000% return per year)
- Joined
- 28 January 2009
- Posts
- 235
- Reactions
- 1
That's a good going nekminit. Surprised you still stick with CFD's... Futures are cheaper don't you think?
Beware of bucket shops, once you are successful strange things start to happen...
Beware of bucket shops, once you are successful strange things start to happen...
That's a good going nekminit. Surprised you still stick with CFD's... Futures are cheaper don't you think?
Beware of bucket shops, once you are successful strange things start to happen...
Bucket shops ahhhh! Started trading with (CMC) main reason why i moved to IG but in saying that IG are slim balls also, my strategy is set and forget max days in trade 20.
- Joined
- 17 August 2006
- Posts
- 7,739
- Reactions
- 8,331
Most here would be very interested to see a few of your best trades which propelled your 50K to almost $2million ...... totally understand if you prefer not to divulge, but personally, I'm keen to see where that kind of cash was generated
Most here would be very interested to see a few of your best trades which propelled your 50K to almost $2million ...... totally understand if you prefer not to divulge, but personally, I'm keen to see where that kind of cash was generated
Some memborable trades below in no order.
Sprint nextel US
QBE
Gold ( Aug 13 )
DPW ( Germany )
Best Buy ( This trade made me 97k )
SPX500
NXT UK
FMG
8001
Softbank corp
CSC
VNO
Just some positions
How did i do it? Back in April 2010 i opened a position FMG going long with 120,000 CFDS entry @ $4.45 exit $5.33
Go big or go home is the moto
- Joined
- 12 November 2007
- Posts
- 1,629
- Reactions
- 47
Doing what to get in on these trades?
I'm almost more interested in why you've lost almost 500K in the last 3 months? Especially seeing as it seems like your first big(or rather huge) loss before, otherwise I'd assume you would know about the tax details if you'd had a loss like this before.
- Joined
- 20 January 2012
- Posts
- 32
- Reactions
- 0
Contemplating trying CFD's.. Not sure what derivative game to play?
- Joined
- 20 January 2012
- Posts
- 32
- Reactions
- 0
Checked out commsecs demo account for CFD's... I've been missing out for so long not being able to short the market. Seems like a good thing to start learning.
skc
Goldmember
- Joined
- 12 August 2008
- Posts
- 8,277
- Reactions
- 329
Similar threads
