Share
28 Posts.
lightbulb Created with Sketch. 1
clock Created with Sketch. 05/01/24
05:50
Share
Originally posted by ziyou:
↑
I trade shares in a Pty Ltd company and declare the company a trader not an investor, this way the profit comes in as income ont capital gain, the reason I do this is simple. The accumulated profits can sit in a company and be taxed at 30% ,soon dropping to 27 or 25% i think). when the profits are distributed to the shareholder or holders, at a time of their choosing and an amount of their choosing, then the tax already paid is a credit against your tax payable from your personal income , if any , other wise the distribution is taxed at the normal tax rate and the dividend imputation credit is deducted. you can control the whole deal timing wise, Pty ltd compnaies are fairly simple to set up and run accounting wise, it can even be done manually, shock horror.
Expand
Hey Ziyou. If the buying of shares is deductible in the year they are purchased. What's stopping someone from reinvesting all of their gains and never having to declare income and be taxed?
