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Re: CFD

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I'm new

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Replies 4

Hello,

 

I am an Individual tax payer. I trade in CFDs for short term (days, weeks) using mobile/laptop. I have recently made a net loss. Is there any provision to adjust my net loss against my income - essentially reducing my taxable income? If yes, under which cateogry should I show this net loss? I do not have any ABN. Do I need to to get an ABN?

 

Best,

rockbottom

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Most helpful response

ATO Certified Response

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Hi @rockbottom,

 

Welcome to our Community!

 

We have a detailed taxation ruling TR200515 that is available which discusses the tax consequences of contracts for differences and provides relevant explanations and examples.

 

If you still have further queries relating to your situation, you can contact our Early engagement team by submitting a request form or requesting a call back and someone will contact you to discuss your circumstance further.

 

Thanks.

4 REPLIES 4
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Taxicorn

Replies 3

Generally no, you will carry forward that loss to offset against next years business income.

There are certain instances (non-commercial losses) where you can but you probably wouldn't pass any of these tests.

 

 You don't have to have an ABN, but as it costs $0, you may as well if you are entitled to an ABN

 

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I'm new

Replies 2

Thanks @macfanboy.

I am confusd now. I am not a business so there is no business-income. How you would I carry forward and offset next year?

 

Best,

rockbottom.

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Taxicorn

Replies 0

You are carrying on a business like venture (Share Trader), therefore you are in fact a business.

All income and deductions will be recorded as such under item 15.

 

A Share Trader will buy and sell lots of shares numerous times a year, because of this the ATO will recognise you as a Share Trader.

 

A share trader is a person who carries out business activities for the purpose of earning income from buying and selling shares. For a share trader:

  • receipts from the sale of shares constitute assessable income
  • purchased shares are regarded as trading stock
  • costs incurred in buying or selling shares – including the cost of the shares – are an allowable deduction in the year in which they are incurred
  • dividends and other similar receipts are included in assessable income.

There is only one tax return form that you fill in, this covers both business and personal.

 

Deductions can only reduce the amount of tax that you have to pay, they do not provide $ for $ rebate.

 

I would strongly suggest that you see a Tax Accountant initially so that you are aware of all of your obligations.

 

The fee will be a tax deduction in the following year.

Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @rockbottom,

 

Welcome to our Community!

 

We have a detailed taxation ruling TR200515 that is available which discusses the tax consequences of contracts for differences and provides relevant explanations and examples.

 

If you still have further queries relating to your situation, you can contact our Early engagement team by submitting a request form or requesting a call back and someone will contact you to discuss your circumstance further.

 

Thanks.