Investor deductions

[Mika]

Hello

As an share investor (as opposed to trader) what can I claim on tax?
- cost of interest payments on margin or equity loan
- brokerage
- capital losses

anything else?

Thanks!

 

[vicb]

HI Mika,
I am in the same boat as you, great question.
You may be able to claim paid subscriptions to services.
I have been a subscriber to Fat prophets and have been able to claim the costs of that service as I have acted on the information that I have received from them.
If you are a subscriber to something similar then you may be able to claim that cost.
As always though check with your accountant.

 

[spitrader1]

Hello

As an share investor (as opposed to trader) what can I claim on tax?
- cost of interest payments on margin or equity loan
- brokerage
- capital losses

anything else?

Thanks!

One of the best ones to claim is if you have bloomberg on youre foxtel, you can claim it.

 

[Sean K]

Proportion of Internet connection, phone connection. Calls to....
If you have a home office (of course you do) then proportion of power bill, depreciation or write off of furniture for the office (even picture framing for the paintings in the office. If you bought a new dining table perhaps this is a desk? I have a lounge chair which is in the office. Pot plants.........)
Computer depreciation.
Printer.
Printer Cartridges.
Modem.
Wireless keyboard and mouse.
Mailing.
Cost of Financial Review every day.
Subscriptions to Personal Investor magazine.

Just some ideas.

Of course, consult a tax agent, or get your tax done by an accountant to sort it all out.

 

[dj_420]

yeah but as to claiming bloomberg you can only claim the percentage of what that channel makes up, you cant claim the whole package (movie channels etc). so bloomberg would be on the news channels so you can only claim that part.

you can claim anything that you have used to enable you to trade.

- computer
- office equipment
- internet connection
- brokerage
- books

ive also been told by an accountant you can claim a certain percentage of rent.

 

[dj_420]

you beat me too it kennas!

lol

anyway i will definately be going to an accountant this year. and ive just been saving receipts from everything.

 

[judge]

Be careful if claiming part of your primary residence (a study etc) as a home office expense.

Normally all your capital gains from the sale of your primary residence are free from CGT.

But if you claimed a study, for example, in your primary residence as a tax deduction then a portion of any capital gains should you eventually sell your primary residence will be liable for CGT on a proportionate basis based on something like the floor space your study occupies as a % of the total floor space of your primary residence and the length of time your study was used as a tax deductible home office plus possibly other criteria as well.

Bottom line: if claiming home office expenses, do some thorough number crunching beforehand to ensure that any tax benefits obtained in the short term won't be completely wiped out or worse by CGT if you eventually sell your primary residence.

As always though, treat this as a basic guide only and consult your own tax adviser or ATO directly re what is best for your circumsatnces.

 

[theasxgorilla]

Hello

As an share investor (as opposed to trader) what can I claim on tax?
- cost of interest payments on margin or equity loan
- brokerage
- capital losses

anything else?

Thanks!

The differentiation used by the ATO is actually "share trader" or "share holder". As a "share holder" the following applies to brokerage:

"costs incurred in buying or selling shares are not an allowable deduction in the year in which they are incurred, but are taken into account in determining the amount of any capital gain"

Seemingly brokerage is not an allowable deduction.

 

[deftfear]

Hello

As an share investor (as opposed to trader) what can I claim on tax?
- cost of interest payments on margin or equity loan
- brokerage
- capital losses

anything else?

Thanks!

Hi Mika,
To answer your questions you can claim margin loan interest against dividend income and this can also be also be negatively geared just like a home loan.

Brokerage is added to the cost base of the shares eg you buy $3000 worth of shares, with $20 brokerage your cost base is $3020. Later on you sell for $4000 with $20 brokerage your total gain would be $960.

Capital losses can only be applied against capital gains, so if you had more capital losses than gains, you would not have to pay any capital gains tax and you would have some unapplied capital losses which can be carried forward to future years and can decrease your capital gains when you have them.

OF course, please see a qualified accountant as each case can be different and this is not taxation advice.

 

[dj_420]

The differentiation used by the ATO is actually "share trader" or "share holder". As a "share holder" the following applies to brokerage:

"costs incurred in buying or selling shares are not an allowable deduction in the year in which they are incurred, but are taken into account in determining the amount of any capital gain"

Seemingly brokerage is not an allowable deduction.

it forms part of your cost base (brokerage) that is, and is used when calculating capital gains.

easy way ive done is total sells - total buys (less current holdings) gives gross capital gains. then add up your cost base ie brokerage, broadband etc.

i also wanted to start this thread again since it is almost tax time.

im up for a fairly hefty CGT bill and want to know what else i am allowed to deduct apart from following:

- magazines
- books
- brokerage
- broadband

i also wanted to know if you are allowed deduction on computer or depreciation at least. i was thinking about buying a laptop would that be deductible??

 

[deftfear]

i also wanted to know if you are allowed deduction on computer or depreciation at least. i was thinking about buying a laptop would that be deductible??

Yu are able to claim depreciation on a laptop, but you can only claim it for the time you held it, ie if you bought it now, you would only be able to claim 2/52 weeks worth of the whole years depreciation.

For example, you bought a $2,000 laptop, depreciation would be $2000 x 37.5% x 2/52 = $28.85 for this year

Next year would be $1971 x 37.5% = $739

Then you need to take into consideration of the computer will be used for personal use and also deduct from the depreciation that amount, ie you use it 20% for private use, you can only claim 80% of the depreciation.

As usual, seek professional advice as I do not know your peronal circumstances.

 

[disarray]

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