cfd trading
cfd trading
http://www.stocktradingrobot.org/PFR
CFD tax question on fees?
if i do CFD trading in AUSTRALIA,
am I eligible to receive a tax refund on the fees on a trade/s? if so how much % could i possibly receive back? anyone have any idea?
Well I had no idea what a CFD was until you asked this question and it is something that you would probably be better off discussing with wither a tax advisor (who can go into what you are doing in more detail) or give the ATO a call and get their advice.
The only comments that I could make on this one is that:
1. What is the nature of your trading is it a hobby or a business activity, do you do it make a profit?
2. Do you have records of the fees associated with the transactions?
3. Generally only things done with a view to profit/conducted in a business like manner are considered to be “income earning activities” and only expenses incurred in earning that income are deductible.
4 “Deductions” are not refunds and is meerly a reduction in the income you earn that is equal to your cost/s incurred in earning that income and as such you do not pay tax on that amount of money. As an example if your tax rate is 20% you earned 30,000 and had costs of $1000 in fees- then you are taxed on 29,000 (30G-1G) and becaue your tax rate is 20% you have reduced your tax by $200 so you are in the end still out of pocket $800. A lot of people think that they get “refunds” of the full amount of their expenses- but no the expenses are offset against income to establish the real income (profit) which is then taxed and in effect the only bit tha you get back is - not having to pay tax on that money.
http://www.stocktradingrobot.org/PFR
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