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SoAn229(Initiate)Initiate
7 Mar 2024

Hi

I'm a share trader who uses CommSec & have a margin loan.

I'm confused as to which figure I use to value my share portfolio for opening & closing stock when completing my individual tax return (business section) as the statement shows two different amounts (taking into account the margin loan).

For example, my Commsec statement shows my share portfolio value at 30 June as $400k but the net portfolio value position as $200k at 30 June.

I was hoping that I can take the net portfolio value position as my closing stock valuation?

And then that will be my opening stock value for next financial year. I've tried finding the answer in the BPI instructions on your website but there isn't much specific information for financial asset trading for completing the tax return correctly.

Any help much appreciated.

Thank you

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943 views
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Most helpful reply

AriATO(Community Support)Community Support
14 Mar 2024

Hi @SoAn229


As you're a share trader, your shares portfolio is trading stock. The tax treatment of trading stock can be found under General trading stock rules and Accounting for business trading stock on our website.


All businesses are required to value their trading stock at the end of each income year (closing stock) and at the start of the next income year (opening stock).


You'd use the shares portfolio value of $400K on 30 June as your closing stock, which'll be your opening stock for the next income year. The net shares portfolio value of $200K on 30 June excludes the margin loan which is your equity in the share portfolio rather than the value of the closing stock.


The page on the Portfolio tab in a Commsec margin loan account contains the following entries:


Entries on the left-hand side of page                   Entries on right hand side of page.


Today Changes                                                                 Market Value

Total Profit or Loss                                                           Total Costs


Portfolio Market Value                                                    Net Equity

Loan Liability                                                                      Available Funds


The closing stock value of your share's portfolio is the figure at Market Value which equates to the amount at Portfolio Market Value.


All replies

Most helpful reply

AriATO(Community Support)Community Support
14 Mar 2024

Hi @SoAn229


As you're a share trader, your shares portfolio is trading stock. The tax treatment of trading stock can be found under General trading stock rules and Accounting for business trading stock on our website.


All businesses are required to value their trading stock at the end of each income year (closing stock) and at the start of the next income year (opening stock).


You'd use the shares portfolio value of $400K on 30 June as your closing stock, which'll be your opening stock for the next income year. The net shares portfolio value of $200K on 30 June excludes the margin loan which is your equity in the share portfolio rather than the value of the closing stock.


The page on the Portfolio tab in a Commsec margin loan account contains the following entries:


Entries on the left-hand side of page                   Entries on right hand side of page.


Today Changes                                                                 Market Value

Total Profit or Loss                                                           Total Costs


Portfolio Market Value                                                    Net Equity

Loan Liability                                                                      Available Funds


The closing stock value of your share's portfolio is the figure at Market Value which equates to the amount at Portfolio Market Value.


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SoAn229(Initiate)Initiate
15 Mar 2024

Sorry another question, I read somewhere a long time ago that the brokerage fees are not allowed as a business tax deduction (as a separate business expense claimed in BPI)?

Is this correct?

The CommSec trading statements list the total brokerage fees as a separate amount as well as in each share transaction.

Thought I may be able to claim the total brokerage fee in purchases & other costs (cost of sales) but had read somewhere they are not allowed as a business expense?

It's confusing as the total FY sales & purchases on the CommSec statements says inclusive of brokerage & gst.

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