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What do I report on income tax (trading) CFD's?

Initiate

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I posted this thread ages ago but just got an email notification, as far as your additional query goes you're overcompicating it let me explain,

If you aren't trading CFDs you will be capital gains taxed, you are subject to pay tax for any trades profited to your account, even if the money isn't in your own bank account etc, all you need to do is simple, your broker gives you an account statement, you present this statement to a business tax agent and they sort it out for you, it's that simple.

I'm new

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Hi

I have the same questions. Please advise if you have the answers to them ? If yes, it would be highly appreciated if you can help me with these.

ATO Community Support

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Hi @Anand

 

Probably best you post your own questions. As you can see there are many and varied queries in the thread. All with various responses and links supplied to assist. macfanboy and Revan both offer good insights into what is being asked so you may want to review their posts. Thanks

Newbie

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Hi you managed to get an answer for your query? i am in the same boat and really confused.

ATO Community Support

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Hello @mscrashed,

 

@macfanboy addressed this question well at the top of this thread. As he advised the income made from trading CFDs is considered ordinary income and reported on your tax return at item 15.

 

@AmandaE has provided links to our website on income and deductions for business which will address deductions you can claim. 

 

Please let us know if you have anything further questions that are not covered in this thread. 

Newbie

Replies 3

Hi,

thanks for the info on trading CFD's and tax treatment.

It appears to me as a sole trader with a growing CFD portfolio I should set up an ABN, then report at financial year end on income, expenditure, p&l.

Any thoughts appreciated.

Whoson

Taxicorn

Replies 2


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.

Newbie

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Thanks for the reply. I'll go that way this year and see how I go. The ATO wouldn't want income included into the PAYG process would they?

Taxicorn

Replies 0