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08:15
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Originally posted by boom or bust
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Thanks for the replys makattack and bent....i'm no newcomer to trading....but that was new to me,iv'e always picked and chosen which parcels of shares i'm selling... if iv'e been accumulating 1 particular share...and if possible and the timings right...i'll hang on to the 1st parcels bought for the longest thus giving me the benefit of the 50% capital gain discount...(obviously the ones you paid the least and profited the most are the ones you want to be holding for 12 months(my tax agent sees that as avoiding to pay tax on the full amount of profit)don't worry i have worn some pretty hefty losses at times too...but she would expect me to sit on those forever and just pay taxes on gains...(another one she dislikes) is i thought it would be common practice(or common sense) to clean out your portfolio in june of losses to offset some gains....in her eyes thats tax avoidance (i wonder if she's related to joe)...i am diligent in keeping records and books e.t.c of date bought.. date sold.. buy price...sell price...total costs...total proceeds...nett profit...total losses e.t.c e.t.c....i hand my tax agent my book with all the info she needs ( her part should be simple)....but she screws it all around and tells me its all wrong and its tax avoidance by selling first shares last as to get a 50%capital gain discount....geez! i just thought it was common sense.. not tax avoidance.....no wonder iv'e had some pretty hefty tax bills in the past....she seems to be working for the tax office....and not the client...screwing me for every dollar she can collect for them...is what i'm starting to think....i'm as straight and honest a person you'll find....but obviously everyone would like to reduce there taxable income where they can....so all in all....after 12 yrs of being a loyal client should i be looking for a tax agent that looks after the best interests of the client and not the ATO?....Rant Over!!
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Strictly speaking she is correct. Selling stocks prior to June just for the purpose of reducing tax is tax avoidance. However I think the rule is you cannot then buy back the same stock within a month. So wait a month and you'll have no issues. Even if you don't wait a month I'm not sure the tax department is strict on this. As always get professional advice, preferably not your current agent.
