Archive through May 06, 2006

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palanquin

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Post Number: 4
Registered: 04-2006

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Votes: 0


Monday, May 01, 2006 - 11:16 am:

perler59

CFD profits are tax free check - again - with your accountant:-)
Palanquin.

perler59

Member

Post Number: 816
Registered: 09-2003

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Votes: 0


Monday, May 01, 2006 - 11:31 am:

Palanquin. If CFD profits are tax free, then why is anyone trading real shares? My accountant treats CFD profits and losses like any other short term capital gain/loss.

http://sttc.net.au/~stever

ingot54

Member

Post Number: 1409
Registered: 05-2004

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Votes: 0


Monday, May 01, 2006 - 11:39 am:

Palanquin

If what you say is true, then Mr Costello may have to reframe his budget, due for rele

ase in 9 days!

However, I believe the issue has been resolved in favour of the ATO (surprise, surprise) and we still have no free lunch!

http://forum.incrediblecharts.com/messages/12/374441.html#POST53194

and

http://forum.incrediblecharts.com/messages/35933/197569.html

I would love to be convinced ... then all we have to do is convince the ATO people, whom we all know and love!

Keep Smiling

Trading style :CFD's predominantly. Looking for ways to enter CFD trading over long term.

davkell

Member

Post Number: 411
Registered: 07-2004

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Votes: 0


Monday, May 01, 2006 - 12:31 pm:

I really hope there is no trader's out there trading CFD's with the 'thought' that their profits are tax free, because that just isn't true. And I read on a post recently (can't remember which thread) of someone saying options were tax free. Hey, if you can't get the basics of tax understood, how are you going to be a successful trader?

"Trade Your Way To Financial Freedom" - Van K Tharp

"Manage the downside; the upside will take care of itself" - Donald Trump

ingot54

Member

Post Number: 1410
Registered: 05-2004

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Votes: 0


Monday, May 01, 2006 - 12:39 pm:

Correction to my post above... and apologies to IG Markets:

The commission on accounts turning over $2 million/calendar month is 0.08% (NOT 0.125%, as I stated in my post).

Also, IG markets offer GSLO on around 240 stocks now, which is an excellent range.

If anyone can shed light on a CFD provider with a better overall package than IG Markets, please post your view.

It is no secret that I am a fan of IG Markets.

1) GSLO offered on many top stocks
2) GSLO fee is payable ONCE-ONLY and movable without further cost
3) Reduced commission $8 each way on selected day-trades
4) Reduced commission (0.08%) on $2 million t/over/month
5) Volume discount available on Top 500 ASX stocks
6) Margins offered (on Limited Risk a/c) competitive
7) No ASX data fees charged - data is free
8) No platform fees
9) Guaranteed market price - No spread, No re-quotes
10) Genuine DMA on margined account
11) Trade long or short on most stocks (occasionally not avail)

Negatives:

1) $25 each way commission no longer competitive
2) Trading platform slightly dated now

Balancing the +/- still brings IG markets out on top, in my view. But the incentives provided to qualify for the reduced commissions seem to draw traders into position sizes they might not otherwise consider.

Other folk may see some of my positives as immaterial, and it may depend on the size of your trades. We all have different needs.

Keep Smiling

Trading style :CFD's predominantly. Looking for ways to enter CFD trading over long term.

bonzaboy

Member

Post Number: 3
Registered: 04-2006

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Votes: 0


Monday, May 01, 2006 - 02:44 pm:

Don't know how but numerous responses to my last post showed up at my email address. Thanks to all.

Ivan, not that it's any consolation, but I also suffered heavy losses last year via options trading.

No one to blame but myself, ignored the obvious for a year(ie. market was rising)and blew up in June.

Since then I've been doing a lot of reading, watching and reassessing. The starting point for me now is not how much money I may make, rather how much money I'm willing to lose in any trade.

cfd's are a clearly superior leveraged product to options.

I plan on starting very small and will be happy if I make 25% pa return on my capital.

ingot54

Member

Post Number: 1412
Registered: 05-2004

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Votes: 0


Monday, May 01, 2006 - 03:46 pm:

The trick is to learn from mistakes, as I'm sure you appreciate, Tim.

I have been frequenting this forum for 2 years, and I know my frequent posting must drive folks nuts at times - being in-your-face every time they log on - Ingot is there somewhere.

The time is drawing near when I must withdraw from this "chit-chat" activity. It is not that I have learned it all - but I set out to educate myself, and I have achieved that, with the help of my friends and acquaintances on Incredible Charts. I think I can hold my own now - a licence to learn and develop more as a trader.

I love trading with a passion. It has taken me these 2 years to move from finding new companies (like VCR and GDY) and watching them falter, learning what happens to my feelings when a favourite stock crashes ... and rallies after I am out of it!

Then moving into short-term stuff, after success in the ASX game - 2nd in Tasmania at one point in 2004 - not a qualification, I might add!

I also found people whose user name starts with "S" to be very much into making money, and that suited me too. People like:
Snifter
Stevo
Stickman
Smallworld
Stun
Staybaker
Spider
Sabre

... then there are the other 25 letters of the alphabet

Now I follow Fundamentals first and foremost with help from people like Tony_M, Peterloh, Hilarius and Rederob, Vermante and HC - where is he?

Dug has been a source of lateral thinking, and taught me how to look at stocks another way.

Tim, it takes courage to admit your losses, but it's a good starting point. He who has not felt pain has not made progress - well, maybe!

You said: The starting point for me now is not how much money I may make, rather how much money I'm willing to lose in any trade.

Could I tell you the lesson I learned?

It's this: It's not how much money I make, it's whether I get my strategy right, and discipline myself to follow it. The money will follow.

Keep in touch - would be good to hear how you get on with your CFD's. I too will be putting a toe back in the water shortly, after 7 months on the sidelines.

Keep Smiling

Trading style :CFD's predominantly. Looking for ways to enter CFD trading over long term.

palanquin

Member

Post Number: 5
Registered: 04-2006

Rating: N/A
Votes: 0


Monday, May 01, 2006 - 06:16 pm:

There is NO TAX ON CFD'S

davkell
I really hope there is no trader's out there trading CFD's with the 'thought' that their profits are tax free, because that just isn't true.

The following is the profile of my source and mentor. As always, "trust nothing, check everything". Doing so with an open mind ensures an INFORMED decision and helps keep the egg of ones face.

Blank is a Technical Analyst, fund manager, and systems
designer with more than 20 years of experience in the Stock Market. Blank currently specializes in DERIVATIVES trading, primarily in the Exchange Trade Options, Exchange Trades Futures, and Foreign Exchange Currencies.

Blank is currently employed by or consults to:
Sanford Securities - Senior Analyst
Stock Watch Report - Senior Analyst
New Investor Magazine - Senior Analyst
Investor Centre - Senior Analyst / Product Manager

817 Derivatives Fund - Fund Manager – Senior Analyst

Zero Bond Brokers - Analyst
Equity Broker One - Analyst
Provincial Brokers - Analyst
George Morgan Brokers - Analyst / Fund Manager
A.C.O.F.E - Analyst / Lecturer
Tricom - Broker / Fund Manager

In the past Blank has worked as an analyst for Ord Minnett Brokers; AMP; ANZ Mc Corn Brokers; Pembroke Josephson Brokers; Burrel & Co. Brokers; Bank of Hong Kong, Tricom Brokers, Share Trend.

Blank has lectured for: ASX, SFE, EIS, OTS, and T.A.F.E. He has written articles for Personal Investor Magazine, Shares Magazine, Your Trading Edge Magazine, The Australian Technical Analysis Association, The Financial Review, Traders Review, Traders Press.

Blank has been trading shares and derivatives since 1983 and presently manages his own assets with more than $1M in value.

Blank has formal qualifications: Bachelor Business Communications Diploma of Industrial Psychology Member of A.T.A.A. Member of A.P.A.

Blank's broad range of experience and expertise continues to benefit those who are new to investing in the market. Blank won Technical Analysts of the Year in 2000 outperforming a wide range of local authors and traders. Blank operates with a PS 146 accreditation and a Proper Authority under a number of broker licenses.

Palanquin - with thanks to ingot54 for the level headed nudge.}

davkell

Member

Post Number: 412
Registered: 07-2004

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Votes: 0


Monday, May 01, 2006 - 08:52 pm:

Palaquin;

Excellent credentials of Mr. Blank. So how about telling us how Mr. Blank believes CFD profits are tax free. With that info and his credentials, I'll wipe the egg off my face and see my accountant.

That is.... when I get some CFD profits. (Joke!)

Cheers.

"Trade Your Way To Financial Freedom" - Van K Tharp

"Manage the downside; the upside will take care of itself" - Donald Trump

ken

Member

Post Number: 375
Registered: 04-2003

Rating:
Votes: 1


Monday, May 01, 2006 - 11:05 pm:

Palanquin,

The following is an extract from the ATO's Taxation Ruling 2005/15:

Ruling

11. A gain from a financial contract for differences will be assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997) where the transaction is entered into as an ordinary incident of carrying on a business, or where the profit was obtained in a business operation or commercial transaction for the purpose of profit making.

12. A loss from a financial contract for differences will be an allowable deduction under section 8-1 of the ITAA 1997 where the transaction is entered into as an ordinary incident of carrying on a business or in a business operation or commercial transaction for the purpose of profit making.

13. A gain from a financial contract for differences will be assessable income under section 15-15 of the ITAA 1997 where a taxpayer enters into a financial contract for differences in carrying on or carrying out a profit-making undertaking or scheme, and the gain from it is not assessable under section 6-5 of the ITAA 1997.

14. A loss from a financial contract for differences where the gain would have been assessable under section 15-15 of the ITAA 1997 is an allowable deduction pursuant to section 25-40 of the ITAA 1997.

15. A gain or loss from a financial contract for differences entered into for the purpose of recreation by gambling will not be assessable income under section 6-5 or section 15-15 of the ITAA 1997 or deductible under section 8-1 or section 25-40 of the ITAA 1997. A capital gain or capital loss from a financial contract for differences entered into for the purpose of recreation by gambling will be disregarded under paragraph 118-37(1)(c) of the ITAA 1997

The following is the link to the full text:-

http://law.ato.gov.au/atolaw/view.htm?rank=find&criteria=AND~TR~basic~exact:::AN D~2005%2F15~basic~exact&target=EA&style=html&sdocid=TXR/TR200515/NAT/ATO/00001&r ecStart=1&recnum=2&tot=11&pn=ALL:::ALL

Could you discuss this with Mr Blank and get back to us as to why it doesn't apply to us please?

Ken

Trade with the trend, not against it.

The trend is the direction of the 22ema line (Elder)

msparks

Member

Post Number: 482
Registered: 10-2004

Rating: N/A
Votes: 0


Monday, May 01, 2006 - 11:56 pm:

Guess it is OK if you are a gambler

If you are in the BUSINESS of trading it would not be OK.

dug

Member

Post Number: 1049
Registered: 07-2005

Rating:
Votes: 1


Thursday, May 04, 2006 - 10:41 pm:

Palanquin,
Eagerly awaiting resolution to your No TAX on CFD statement that you garnered from that impeccable source Mr Blank.

Even if you have,no doubt,mis-heard,misinterpreted,just generally been mis-directed,I believe you are Honour Bound to resolve,respond to us,your audience.

I would also like to point out that you have given waaaaay too much info re Mr Blank.He/She is identifiable simply by looking up Winners of that Anal of the Year contest,you mentioned.

I'll watch out for your reply,hey pal?

cheers.

Avatar- PHACOPS{speculator}from the Devonian Period.

ingot54

Member

Post Number: 1433
Registered: 05-2004

Rating: N/A
Votes: 0


Thursday, May 04, 2006 - 11:34 pm:

This does seem to go against normal convention.

I'm sure there is a rationale that we may not have considered here.

I'm prepared to wait until I hear another viewpoint, as I am not a qualified taxation expert.

Keep Smiling

Trading style :CFD's predominantly. Looking for ways to enter CFD trading over long term.

msparks

Member

Post Number: 489
Registered: 10-2004