Reporting income and Tax on US Options trading from Australia

[Totalfreak16]

Hi All,

For the last 6 months, I have been trading only in US Futures Options. I am a tax resident of Australia. I always do day trading and NO investment.

For filing a tax return in Australia, is the realized income or loss from US Futures options treated as direct taxable income? Is the income treated as short-term or long-term?

I did check with a few accountants and they have limited expertise as to how to calculate the income from US futures options.

Can anyone point out to an accountant who knows how to file tax on income generated from US options?

Also, any referrals (accountant) would be great.

Really appreciate your help. Thank you.

 

[Futuresmaker]

Hi All,

For the last 6 months, I have been trading only in US Futures Options. I am a tax resident of Australia. I always do day trading and NO investment.

For filing a tax return in Australia, is the realized income or loss from US Futures options treated as direct taxable income? Is the income treated as short-term or long-term?

I did check with a few accountants and they have limited expertise as to how to calculate the income from US futures options.

Can anyone point out to an accountant who knows how to file tax on income generated from US options?

Also, any referrals (accountant) would be great.

Really appreciate your help. Thank you.

Hi Mate,

Big firm like H&R Block may have expertise on how to help you todo this . I am not an accountant, however based on my non accounting simple understanding is as long as you can work out the difference between what you sell and what you buy then you have your figure of profit or loss at the end of FY. Expenses related maybe deductible, just check with the accountant. Off course you need to convert the profit, loss and expenses related in USD to AUD. ATO publishes the rate for 30th June every financial year, you can google. Good luck.

 

[Santafe]

The biggest pain in trading on US Platforms in $USD, is the converting back and forth from $AUD and $USD to know just what the profit and loss really is, I did it once, and it is so convoluted trying to keep track, since the exchange rates are always changing.
Has your head spinning in the end.

 

[Santafe]

Hi Mate,

Big firm like H&R Block may have expertise on how to help you todo this . I am not an accountant, however based on my non accounting simple understanding is as long as you can work out the difference between what you sell and what you buy then you have your figure of profit or loss at the end of FY. Expenses related maybe deductible, just check with the accountant. Off course you need to convert the profit, loss and expenses related in USD to AUD. ATO publishes the rate for 30th June every financial year, you can google. Good luck.

Seems things may have changed since back early 2000's. I were not aware that the only requirement was to asses foreign earned profit and loss on the basis of a yearly exchange rate average. That actually simplifies things a whole lot. If I had known that were all that was required back then , would have made life easier, and i might even still be trading the us stock market. Live and learn, and things change, sometimes for the better.