How to treat dividends in CFDs for tax

[ukulele]

Hi All,

I am a small investor hence I cannot claim capital losses against my regular (job) income; I can only use them to offset against other capital gains.

Let's say you go short a CFD and then have to "pay" the dividend on ex-div. Once the position is closed, would this payment form part of the capital movement of the CFD? Or would you treat it the same as interest on a margin loan?

thanks,

Uke.

 

[skc]

Hi All,

I am a small investor hence I cannot claim capital losses against my regular (job) income; I can only use them to offset against other capital gains.

Let's say you go short a CFD and then have to "pay" the dividend on ex-div. Once the position is closed, would this payment form part of the capital movement of the CFD? Or would you treat it the same as interest on a margin loan?

thanks,

Uke.

Some information here.
http://www.stockwatch.com.au/articles/derivatives/cfds/cfd-tax.aspx

It seems more convenient to treat CFD like a business if applicable... but see ur own tax dude/girl.