This is definitely not advice or meant to be accurate, but I have 'heard' from some sources that the problems with the banking system and credit markets in Australia hasn't even come to light completely yet - and Australia is in for some more pain before there is any real recovery.
hehe, just think of all the brokerage expenses added up along with the CGT expenses (without using the discount method) that you could have used to compound from. feels like such a waste just thinking about it.
of course - if you want to look at the bright side - day trading will be helping the government with their deficit lol
Often, traders don't pay CGT, they pay ordinary tax - because they're actually traders as a profession, and not investors.
Try paying the bills with a buy and hold strategy mate, you'll be living on the street in a month.
Your probably trading on comsec paying $20 commissions, holding stocks that are losing value so you can hit the 12 month holding period, and carrying a lot of risk over the weekend. Been there, done that, not my cup of tea
you cannot discount ordinary tax though. so isn't that pretty much the same thing as paying full tax like as if it were CGT not held after 12 months?
nice assumption there in bold. you act like you know my investments so well.
you cannot discount ordinary tax though. so isn't that pretty much the same thing as paying full tax like as if it were CGT not held after 12 months?
The chart below gives a pretty clear picture of the challenges that lie ahead for the US and the rest of this systemically interconnected financial world, as we all try to struggle through the hangover left by the near collapse of the global economy in late in 2008.
The green and the red stuff in the graph is the extra money the US Federal Reserve has added to its balance sheet to support the US and global economies. (US banks, currency swaps, new lending funds, US commercial paper). There's an awful, awful lot lot, more than any one can comprehend. Simply trillions of dollars which has been was used to stabilise the global and various economies from the threat of implosion after Lehman Brothers fell over and a number of other banks creaked and tumbled.
The Fed beefed up its balance sheet and that's what is holding up the world economy at the moment, with modest assistance from the Bank of England, the Bank of Japan and the European Central Bank. The ship has steadied, but rocky shoals lay ahead, or jagged mountain peaks.
The next step is to dismantle this monster mountain of money before it ends up causing its own set of dislocations: say a surge of inflation after the deflationary effects have run their course; or another recession if the play dough is pulled away too quickly.
To say the Fed and the rest of the financial world are in uncharted waters ranks, quaintly, as something of an understaement. As any climber will tell you, the worst falls usually take place on the descent.
Our thanks to Crikey fiscal vigilante Julian Gillespie for this lovely Fed graph:
But it's alright for you to make assumptions about daytrading? You obviously have very little understanding of how daytraders actually operate.
Did it occur to you that traders that trade for a living are actually running a business and therefore can claim business expenses and pay tax like any other business?
No matter what profession you are in, if you make money you are going to pay tax.
what assumptions have i made? all i said was that there are a lot of tax and brokerage expenses added up together that could have been used to compound. that's fact.
in relation to claiming deductions. so what you're saying is that day traders incurring these expenses can claim these as a deduction, therefore it's good enough? expenses don't matter because you can claim as deductions right? in reality you are only claiming your tax bracket only on those expenses, the rest could have been compounded and doesn't change the fact that the whole expense gone could have been used to compound. why don't we all ask our tax accountant to up his tax fees because essentially it's the same thing as what you're saying. "we can claim it anyway as a deduction"
you can't even halve that income on your TR. therefore u're paying more tax than someone who - over the long run - gets the same yearly average compounding ROR as a day trader and defers their tax liability
If your making your investment/trading/business decisons based on tax alone, then you are way off. Produce a profit first, worry about tax later.
Possible Golden cross on S&P 500
http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=062F7428-1871-E587-E1C0FE716BAC517E
Of course it may just bounce off and go down. Still something to watch for.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?