Thanks for your quick reply McLovin.
Silly me. So the net position should be $40.15 - $ 1.43 = $38.72 right?
Your calculation is correct. I'm not sure how you reached the conclusion you will have a loss?
$17.21 (30% of the gross amount) has already been paid in tax. As your marginal rate is 32.5% you will only have to pay an additional 2.5% in tax, which equals $1.43.
Thanks for your quick reply McLovin.
Silly me. So the net position should be $40.15 - $ 1.43 = $38.72 right?
Hi
Can someone help with this please?
With a dividend which was paid on 11/4, what is the earliest I can sell the stock and retain the franking credits?
With thanks
Rick
You have to have held the shares for 45 days. If on the 11/4 you have held the shares 45 days then you can sell then. You don't need to wait until the cash amount is paid to you, once the stock is ex dividend (assuming you've held for 45 days) you can sell it and still get the divvie + franking credits.
Thx ML. I had these shares for much longer than 45 days before the divie was paid on 11/4. However I was under the impression that I had to hold them for a minimum number of days after that. Not so?
Thx for the quick response.
Can I just check something?
45 calendar days or 45 working [market open] days? I assume it is the former?
Many thanks
Rick
Hey Rick
You assume correctly, it's 45 calendar days.
Hey Rick
You assume correctly, it's 45 calendar days.
But not including the days bought / sold
Might be wrong, but i think im right.
Hi
Can someone help with this please?
With a dividend which was paid on 11/4, what is the earliest I can sell the stock and retain the franking credits?
With thanks
Rick
The 45-day rule also applies only if your total annual dividends exceed $5,000.
However, under the small shareholder exemption this rule does not apply if your total franking credit entitlement is below $5,000, which is roughly equivalent to receiving a fully franked dividend of $11,666 (based on the current tax rate of 30% for companies)
In any case, franking credits can NOT be claimed if an entity reports a tax loss for the FY.
45-day rule for total annual franking credits >$5000, not total dividend.
http://www.ato.gov.au/Individuals/I...You-and-your-shares-2012-13/?default=&page=11
Not sure what you meant by that?
My comment about tax losses referred to hypotheticals, where the costs of setting up or running a business leads to tax losses that exceed taxable income.
Plus the non-super issues too.I wouldn't mind losing the franking credits, if all super funds lost them, but to give Industry Funds the franking credits is just outrageous. IMO
That is a very bad mistake. Most political parties plan at least two elections ahead. That's why Kim Beazley lost his job years ago. Labor knew they would win the 2007 election but were unconvinced about 2010 - so they replaced Kim with Rudd and we know what happened there.
That is a very bad mistake. Most political parties plan at least two elections ahead. That's why Kim Beazley lost his job years ago. Labor knew they would win the 2007 election but were unconvinced about 2010 - so they replaced Kim with Rudd and we know what happened there.
This looks quite similar - smug arrogance which will prove costly. If a policy has merit - sell it.
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