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Online Share Trading

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Tax implications of ABL

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kels
Contributor
I got back from a week in the bush last Saturday where I had been without news,cellphones or TV to find that ABIL had collapsed and was suspended on Monday. Could have kicked myself because I knew I should have bailed a while ago but didnt. Can anyone help me with the following question. I would have asked my tax guy but he is also away. Can I offset the loss on ABIL shares against the profit of the sale of another share for tax purposes. The shares are held in an investment,not trading, account and have been held for more than 3 years.The fact that I can't sell them to realise the loss as they are suspended is a bit unusual! I would appreciate any assistance.
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9 REPLIES 9
Rams
Super Contributor
its not a trading loss yet on ABL because you cant trade it..maybe there is a fancy accounting term you could claim the loss under.
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kels
Contributor
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superstar
Regular Contributor
In my understanding you held ABIL (and other shares as Investment instruments and not trading instruments) therefore you may be liable for Capital gains on assets you made gains and offset such gains against ABIL losses. You will be able to claim capital losses whenever you sell other shares and make gains on them.
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THRESHOLD
Super Contributor
If you are a share trader and trade in your personal capacity, you can write down the value of your stock at year end.
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kels
Contributor
Thanks everyone. Superstar has summed up what I was thinking but the problem as I see it is that I do not actually incur the loss on ABL until I sell them and I cant sell them because the share is suspended.
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Not applicable
you can write it off, can't you? call it an impairment?
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Not applicable
you can write it off, can't you? call it an impairment?
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kels
Contributor
Thanks Skaap. I will check with my tax guy when he gets back from his trip.
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Rams
Super Contributor
yes,Impairment, thats one of the fancy accounting term i was looking for,,,,,
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