Open CFD at June 30th

[Bluejeanes]

Can someone tell how an open position CFD ( Long and Short )is treated by the ATO at June 30th. My accountant doesnt seem to know much about CFD's, in fact knows nothing. I understand the profit is income and interest is an expense ; but does the value of the cfd get taking into account say as would stock on hand at the end of a trading year?

 

[bvbfan]

Would it really matter as the CFD position would be marked to market so the value would be at the close of trading.

 

[hangseng]

Can someone tell how an open position CFD ( Long and Short )is treated by the ATO at June 30th. My accountant doesnt seem to know much about CFD's, in fact knows nothing. I understand the profit is income and interest is an expense ; but does the value of the cfd get taking into account say as would stock on hand at the end of a trading year?

May pay to read this.

http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR200515/NAT/ATO/00001

Note this section: If you aren't trading as a business or investing for long term gain then this may apply. Maybe someone could comment?

"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."

 

[Naked shorts]

So does anyone know a good accountant that understand what a CFD is?