Hi,
I had a total investment of 22,000 AUD, and there was profit of 18,000 AUD, so a total loss of 40,000 AUD. I had 4 different trading accounts with the same broker, so the amount mentioned is overall. Can you please let me know on how much tax credit will i be eligible for? I used to trade Forex.
Hi @Vivek1977
I'm not sure that I fully understand your question as the details provided are brief. I'm replying on the basis that:
As a general point, our view on CFDs is that they are always treated as revenue, not capital. When we talk profit and loss for CFDs we are looking at the outcome of a closed CFD transaction, not the value of the underlying asset.
So with that in mind, if you ended up with your result all in the one financial year then you have a tax deductible loss of $22k.
If it occurred over a longer period where say you made the $18K profit in year 1 and the loss of all capital of $40K in year two for example. Then you would need to declare the $18K profit in that tax year and the $40K loss the following year.
I hope that makes sense ?
You can have a read through a similar question previously asked on the Community here and also look at our detailed taxation ruling on the tax consequences of CFDs here.
RichATO
Hi @Vivek1977
I'm not sure that I fully understand your question as the details provided are brief. I'm replying on the basis that:
As a general point, our view on CFDs is that they are always treated as revenue, not capital. When we talk profit and loss for CFDs we are looking at the outcome of a closed CFD transaction, not the value of the underlying asset.
So with that in mind, if you ended up with your result all in the one financial year then you have a tax deductible loss of $22k.
If it occurred over a longer period where say you made the $18K profit in year 1 and the loss of all capital of $40K in year two for example. Then you would need to declare the $18K profit in that tax year and the $40K loss the following year.
I hope that makes sense ?
You can have a read through a similar question previously asked on the Community here and also look at our detailed taxation ruling on the tax consequences of CFDs here.
RichATO
Hello RichATO,
I started trading CFDs in August 2020, so it falls in this financial year. I have 4 accounts with the same broker. Initially I invested AUD 5000, for which I incurred full loss, then again I invested AUD 10,000, for which later it gave me a profit of 15000, i haven't withdrawn this amount as i was compunding. I then invested another 6000, and then all of this went in loss. So the total investment i made from my money was AUD 22,000 and the including the profit my total loss was AUD 40,000. So to summarise AUD 22,000 was my investment, on which i earned profit of AUD 18,000. But lost all of it and now the balance is zero. All this happened in 4 different accounts as i moved money from within accounts. How much would be by non-taxable income, for which i will receive tax credit when I file my returns this year.
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