This possibly has been answered before and I would appreciate someone pointing me in the right direction please.
I have an older mate I have a regular fortnightly coffee with. He is a pensioner - full pensioner - but has some cash and does a bit of dabbling on the ASX. He mentioned to me 2/4 weeks ago that he had bought some shares just 11 months ago and sold them the other day for a huge profit. After further questioning it turns out he had originally bought them at 35c/45c and sold them at $13.45 on their way down from an intra-day high. He wouldn't tell me the number of actual shares he originally bought - I suspect around $2000/$3000 worth - possibly had 5000 shares. So I further suspect he has made around $50/60,000 profit - wouldn't give me exact figures or name (I suspect VUL??); getting info was like pulling hens teeth.
Anyway the upshot was I told him he has to pay tax at his marginal rate on 50 % of the profit. But with a rat cunning leer he said he doesn't have a marginal tax rate as he doesn't earn enough to pay tax and he doesn't submit an annual tax return, so stick that in my pipe and smoke it. I couldn't answer him as I was pretty sure the CG profit was not treated as income and I wasn't smart enough or knowledgeable enough to rebut him. But I need someone please to give me the info so I can stick it to him - I still haven't got him to shout the coffee for a change.
