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Online Share Trading

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Tax question

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saash
Super Contributor
Wizzie - Capital Gains is "income" - you can only set off "expenses" against income to reduce the tax. So in your example, take the capital gain from investing activities and set them off with the associated costs of investing activities. You might get away with deducting the interest on your bond, and the transfer duties, but not the capital repayments. Capital gains can be set off against capital losses also, so if you sell your home for a loss you can write the loss off against the gains. All subject to ring-fencing requirements.
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Wizard
Super Contributor
Trading stations with multiple screens and laptops are both categorized as assets and they can go through. So how is a home-office different?
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Not applicable
Ja, but why on earth would you want to use that asset to offset CGT - when you can claim a depreciation against income tax - which is at a much higher bracket?
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Preston
Super Contributor
Wizard, The provisio contain with CGT Act make clear distinction between assets. Trading screen are indeed assets but for CGT purpose , there are exempt from Capital Gain/Capital loss by vitue of being defined as "Personal Used Asset".
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Wizard
Super Contributor
Depreciation on what? House doesnA't depreciate. This is not buying and selling of tomatoes on the market and you use a vehicle to get them there. ItA's buying and selling shares from home.
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Rams
Super Contributor
I have been claiming expenses for my home offfice for years ....make the distinction between home office expenses and fixed property rental or "bond interest expenses". You are essentially renting a portion of your home from yourself for your busines. If your home office is 20squares out of 100sq total, your morgage expense is 5000, then then 20% of 5000 can be added to your home office expense which is also 20% of all household expenses.But remember as Simon said, when you sell, you lose 20% of your exempt CGT deduction.
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Rams
Super Contributor
or you pay CGT on 20 sqm when you sell even if its your primary residence.
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CHATTYCHAT
Super Contributor
Small house :-)
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