Hi folks, I'm a newbie here and I have a question. What do I do with stock that went from 90cents to $12 in a course of few years. It's a risky stock and I was thinking of selling it all and buying blue chips instead but not sure if that's the best course of action. I'd be quite happy paying tax at the sale but I don't know if you can do that and if I get hit with it at the end of financial year, it would be quite a lot of money to pay. So what do experienced traders do. Just to say I'm not a daily trader. Not sure if this all makes sense to anybody. If you can hint me with advice I'd be grateful. Thanks
Selling stock vs. tax
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Sean K
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Sounds like a good win, nice work. For me it would be CGT at the EOY offsetting all the tax losses... Without your full financial situation it's hard to tell and no one here can give you detailed financial advice anyway. If you use an accountant for your yearly tax return they'd probably be happy to receive an email from you outlining the issue and you should get some advice FOC, or ask you to come in for a chat. Would be worth it to get the right advice by the sound of it.
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not an accountant, so look for professional advise but if you sell now, indeed you will have CGT
but if shares held for more than a year, you qualify to a discount so pay CGT on only half of your profit.
we are coming toward the end of the year, you should have a rough idea of your income for this FY and current capital gain if any, check what your tax income is , your expected taxation rate and see if you can sell all your portfolio or only part to ensure limited tax hit; even better (kind of) if you have some capital losses to offset
in any case, you will not have to pay your taxes until end of year or may if going thru an agent may 24 ; if you allocate that tax amount in a saving account till then at 4%, get a bit of extra coins with that before paying the tax man.I hope this does not qualify as financial advice?
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As we all must say, I'm not an accountant so get professional advice because this isn't.
If in your name, CGT is halved if held over 12 months.
Taking above into account, sell it when you think it should be sold. Holding for tax reasons can be expensive if its price drops. Vice versa?
CGT is only payable when sold, not on its value at the end of FY. Maybe payable in the May (as Frog said) following the EOFY of the sale.
You can also look on the ATO site for more info.
If in your name, CGT is halved if held over 12 months.
Taking above into account, sell it when you think it should be sold. Holding for tax reasons can be expensive if its price drops. Vice versa?
CGT is only payable when sold, not on its value at the end of FY. Maybe payable in the May (as Frog said) following the EOFY of the sale.
You can also look on the ATO site for more info.
Dona Ferentes
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You can sell parcels, or portions, of the holding, over time, over different FYs, in order to manage CGT.
Seek advice if you are unsure.
Seek advice if you are unsure.
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a very nice gain , well done
but sell ALL of that stock ??
do you think the company is headed for a fall ( say taking a direction where you feel uncomfortable , .. happens to me from time to time )
since you seem to be in retirement phase , one rarely discussed topic is income ( divs. return on investment outlay )
let's take one winner i have .. GRR now my average buying price is 20.3 cents
recent divs are ( i have held them over 10 years and have been a reasonably regular payer
| GRR | GRANGE RESOURCES. ORDINARY |
| Balance Date | Dividend Type | Cents per share | Ccy | Franked % | Ex-Dividend Date | Books Close Date | Pay Date |
|---|---|---|---|---|---|---|---|
| 31/12/2022 | Final | 2.000 | AUD | 100.00 | 10/03/2023 | 13/03/2023 | 28/03/2023 |
| 30/06/2022 | Interim | 2.000 | AUD | 100.00 | 13/09/2022 | 14/09/2022 | 30/09/2022 |
| 31/12/2021 | Final | 10.000 | AUD | 100.00 | 11/03/2022 | 14/03/2022 | 29/03/2022 |
| 30/06/2021 | Special | 10.000 | AUD | 100.00 | 15/12/2021 | 16/12/2021 | 29/12/2021 |
| 30/06/2021 | Interim | 2.000 | AUD | 100.00 | 13/09/2021 | 14/09/2021 | 30/09/2021 |
| 31/12/2020 | Final | 2.000 | AUD | 100.00 | 12/03/2021 | 15/03/2021 | 30/03/2021 |
| 30/06/2020 | Interim | 1.000 | AUD | 100.00 | 11/09/2020 | 14/09/2020 | 30/09/2020 |
| 31/12/2019 | Final | 1.000 | AUD | 100.00 | 13/03/2020 | 16/03/2020 | 30/03/2020 |
| 30/06/2019 | Interim | 1.000 | AUD | 100.00 | 10/09/2019 | 11/09/2019 | 27/09/2019 |
| 31/12/2018 | Final | 1.000 | AUD | 100.00 | 14/03/2019 | 15/03/2019 | 29/03/2019 |
the next thing to consider is not all 'blue chips' are premium companies some just have a lot of cash invested in them ( and a fan-club of fund managers and analysts )
take two stocks i do not hold CSL and CBA if you bought them at float ( IPO ) they are still fantastic earners for you , however if bought in early ( before March ) 2020 not so nice an income , but some income just the same
you should have a solid background in math having trained as an engineer , make that training become an asset for you now ( just don't automatically trust the given data , sometimes it can be rather stale )
PS ... ALL investing involves risk
take care
So_Cynical
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At some point you are going to sell and it will be a CGT event, just a matter of deciding when you want to pay it.
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Good evening vil, what a magnificent paper profit.
All good sound adive from those that know.
But I thing,to remember is that it's your moolah(paoer profit) gained is from your hard earned and only you can make that decision to sell the 100% or break it into parcels spread over perhaps 2 financial years.
Best bet seek the avice of a finacial guru with a sound history of the stock market for proper advice.
As always though, DYOR Do Your Own Research.
Oh by the way, let us in on the secret stock. Many eyes are awaiting on your response.
Best of luck on whatever decision you decide on.
Thanks Qldfrog, that’s great. Yes I do hold them for more than a year. I also have capital losses so it may be possibe offsetting. I was going to see my taxman about this anyway but thought checking this site first.
Thanks heaps everyone. I keep buying stock for past 20 years but I still feel I'm a bit of a noob when it comes to financial tricks. Ok, I come out. The stock I'm talking about is OCL. I actually bought heaps when it was still 60cents then just kept topping up as it went to 90cents. Believe or not it was up at over $20!!! at some point and silly me I didn't sell it.
Dona Ferentes
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Interesting, and we'll done... if you search the specific OCL thread, there's a bit of narrative going. It's not a company that's going broke, but there are some holders that have sold on valuation.
So_Cynical
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The tech bubble along with most of the other bubbles has burst - buy backs etc are mostly irrelevant.
