is anyone else enjoying the ride???, page-11

re: how do i offset $45k cap gain? is anyone else I'm not sure exactly what parameters the tax office uses in determining a "trader" from an "investor"...but with more than 2000 on market trades executed so far this financial year, I reckon the tax office would have a real hard time trying to convince me that I was just an "investor"...lol

Blue_Sky_Harvest, given the kind of profits you are suggesting, the cost of good advice will probably equate to a few extra $K in your pocket...you really do need to get some decent taxation advice, as everyone's situation is very different.

As for me, I have finally been given special dispensation from the tax office, in that I have permission to treat my share trading accounts like bank accounts...that is, I simply take the difference between the starting and year end value of each portfolio, add or subtract any deposits or withdrawals and come up with a profit or loss figure...simple!

I have also negotiated a flat rate for brokerage so that the cost of each trade is identical, which means expenses are easier to calculate...including the GST payable on each trade. In addition, I never hold a stock for more than 12 months, so there are no CGT issues.

To be honest, this is a major over simplification, but it does give a general idea of one approach...I'm sure there are plenty of others.

Good luck sorting it out.

Cheers!