CFDs and tax

[swhmale]

Re: CFD's and Tax

15. A gain or loss from a financial contract for differences entered into for the purpose of recreation by gambling will not be assessable income under section 6-5 or section 15-15 of the ITAA 1997 or deductible under section 8-1 or section 25-40 of the ITAA 1997. A capital gain or capital loss from a financial contract for differences entered into for the purpose of recreation by gambling will be disregarded under paragraph 118-37(1)(c) of the ITAA 1997.

so if i determine my CFDs as a gamble, i don't have to report my gains or lossess then???

anyone care to shed some light?

from my experience of just a couple of years trading with man financial gains are considered income and losses are deductions. cfd dividends don't attract franking credits no matter how long you hold the cfd, as you don't hold the actual stop.

 

[yonnie]

Re: CFD's and Tax

Generally speaking then, if you start the year with a CFD balance of

$10,000 and the balance ends at

$11,500 - you have a $1,500 taxable income

OR

$8,500 - you can record $1,500 as a loss


And not have to explain the brokerage, interest, etc.

Cheers
Brad

PS. Thanks for the tax ruling.

where does it say that you can run your administration like that: difference between start and end of financial year?

if so, is that also for shares providing you run it as a business?

thanks

 

[swhmale]

Re: CFD's and Tax

where does it say that you can run your administration like that: difference between start and end of financial year?

if so, is that also for shares providing you run it as a business?

thanks

of course you must take into account deposits and withdrawals, but essentially losses, short dividends paid, commissions & other costs are expenses, and profits,long dividends received, & interest received are income, subtract expenses from income and what you end up with is a trading profit or loss.
man financial provide a tax year data excel spreadsheet that details all the necessary info for my accountant.