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Re: Losses in CFD trading were entered as Capital Losses to carry forward instead of Income Losses

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Several years back I traded future CFD & forex CFD that resulted in losses, and entered this as Capital Losses to carry forward in my tax return. I just learnt that this is incorrect, and that the correct entry is as Income Losses and can be applied as deduction towards my income.

1. How do I go about ammending these in my tax return? Is it simply by ammending the entry in my tax return, or are there certain rules?

2. How far back in the past can I apply the losses?

3. Can I apply all of the subject losses as Income Losses in 1 financial year?

Thank you



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This is a great question and I look forward to hearing the answer. My question to OP while we wait is... can you clarify, if I have CFD losses, would I put them in as a different income stream? I have the export report from Plus500, do I just create a new 'job' called 'CFD' trading, under income on MyTax and add in a loss (keeping the report encase i'm queried, or submitting it some how?) ? Is this possible to add a loss ammount or what is the deduction field called?

Thanks, just encase you know Smiley Happy


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Generally speaking, a lot of people who are trading forex using a live trading account are actually trading CFD’s rather than foreign currency.


If you're trading CFD’s they will always be on revenue account.  This means you include any profits in your assessable income, and any loss can be included as a deduction.  Your profit or loss is made when your trade is ‘closed out’, rather than when the proceeds are transferred out of your trading account. You're then taxed on all of your income at the marginal rate that applies to your level of income.


You won’t necessarily be in business as a trader, you would usually need to be making a huge amount of trades to be considered to be in business.


Which income are you hoping to apply the losses to ? 


You can normally amend tax returns 2 years from lodgement date.

Losses would have to be entered yearly not cumulatively.



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"Which income are you hoping to apply the losses to ?"


I'm hoping to apply the losses to my salary & income from other sources.


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Hi treefairy. Thanks for your response but unfortunately I cannot help with your questions. I don't recall I ever put anything under Income Losses field. I used City Index platform/brokerage for the CFD trades.


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hey that's okay. i'm just unsure ... once we figure out if you can claim the deductons, where on the MyTax lodgement you'd actually enter the information of this deduction. I thought maybe you might know where you'd be claiming it on your form if you could.

I think I can because I have an ABN covering trading (targetting my regular cryptocurrency flipping)...



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Hello treefairy


Did you find out where to put your losses or deductions in mytax? I think I'm in a similar situation to yourself. It's not really obvious in mytax or in any of the posts on this forum. I made a loss in CFD and forex trading this year, and I want to declare the loss to offset against future trading gains. I think we've established that it's not meant to go in as a capital loss. I tried entering it in as a deferred non-commercial business loss, but this didn't seem right once I went for my estimate. It seemed to treat the loss as a income gain instead - and raised my tax payable for the year. 

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