Our ATO Community is here to help make tax and super easier. Ask questions, share your knowledge and discuss your experiences with us and our Community.
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.
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
Please let us know if you have anything further questions that are not covered in this thread.
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.
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.
Tell us about your ATO Community experience and help us improve it for everyone.Provide feedback