Tax on CFD market maker?

[Trembling Hand]

Re: Tax on CFD market maker

There are many good things said about Interactive Brokers.

Remember they are "mirror" markets of the underlying vehicle.

Interactive Brokers ISN"T a cfd provider!!!!!!!!!!!!!!!!!!!!!!!

 

[korrupt_1]

Re: Tax on CFD market maker

I paid CGT on my CFD transactions.

I summed up nett gains in the 'other income section'

I then summed up the nett loses in the 'other deduction section'

I paid tax on the difference.

 

[Wysiwyg]

Re: Tax on CFD market maker

Interactive Brokers ISN"T a cfd provider!!!!!!!!!!!!!!!!!!!!!!!

Gee thanks TH.I`m with IG Markets and thought they were all CFD services.

Thanks for your correction.

 

[wayno76]

Re: Tax on CFD market maker

Gday guys and girls, I am a little confused about the tax implications of cfds. There are contradictory answers in this thread. I currently scalp forex au/usd and make one trade a day of 3.5 contracts I put a stop of 20 pips and set my limit at 20 pips sometimes let it run if I'm at the comp at the time. I have consistently made between $2000 and $5000 a week since start of the year. will I have to declare this or is it considered gambling. It is not my only income as i have a fulltime job in construction and only trade after work. I cant seem to get a straightforward answer from the ato or my cfd provider. Any info is greatly appreciated thanks.

 

[AlterEgo]

Re: Tax on CFD market maker

Gday guys and girls, I am a little confused about the tax implications of cfds. There are contradictory answers in this thread. I currently scalp forex au/usd and make one trade a day of 3.5 contracts I put a stop of 20 pips and set my limit at 20 pips sometimes let it run if I'm at the comp at the time. I have consistently made between $2000 and $5000 a week since start of the year. will I have to declare this or is it considered gambling. It is not my only income as i have a fulltime job in construction and only trade after work. I cant seem to get a straightforward answer from the ato or my cfd provider. Any info is greatly appreciated thanks.

You'll have to declare it.

 

[prawn_86]

Re: Tax on CFD market maker

You'll have to declare it.

Are you sure about this? Got a link?

I thought CFDs were gambling income?

 

[Trembling Hand]

Re: Tax on CFD market maker

Are you sure about this? Got a link?

I thought CFDs were gambling income?

Nope. Its only considered gambling if its the odd (1 or a couple) punts.

What wayno is describing is carrying out a business activity and needs to declare that.

DYOR and all that jazz.

 

[skc]

Re: Tax on CFD market maker

Are you sure about this? Got a link?

I thought CFDs were gambling income?

They are in the UK, but not here in Aus.

 

[prawn_86]

Re: Tax on CFD market maker

Nope. Its only considered gambling if its the odd (1 or a couple) punts.

What wayno is describing is carrying out a business activity and needs to declare that.

DYOR and all that jazz.

Ok i guess that makes sense

 

[sinner]

Re: Tax on CFD market maker

Are you sure about this? Got a link?

I thought CFDs were gambling income?

Anyone using MM CFDs should be checking the Product Disclosure Statement for their bucketbroker, this is definitely mentioned in the PDS provided by IG!

Which you can of course, find on their website (and have it shoved down your throat when you sign up).

 

[wayno76]

Re: Tax on CFD market maker

Anyone using MM CFDs should be checking the Product Disclosure Statement for their bucketbroker, this is definitely mentioned in the PDS provided by IG!

Which you can of course, find on their website (and have it shoved down your throat when you sign up).

Thanks sinner, I just checked out the IG PDS and its pretty clear the ATO doesn't consider CFD's gambling at all.

Paragraph 118-37(1)(c) of the ITAA 1997 provides capital gains and capital losses arising from "gambling, a game or a competition from prizes" are to be disregarded. The ATOs position is that capital gains and capital losses from trading CFD's do not qualify for this or any other exemption in the ITAA 1997