Loss in Forex/Share Trading

Hi, where can I deduct loss in Forex/Share Trading?
Against personal income?
Against property rental income?
Against future Forex/Share gains?

 

If trading it will probably be an income loss. You could deduct in against other income.

Seek tax advice.

 

Are you actually trading in foreign currency or making gains/losses on a foreign currency denominated account?

Or, did you make a short term foreign exchange loss related to acquisition or disposal of shares on the capital account? Note that individuals purchasing and selling shares directly are usually still regarded by the ATO as investors and not a share trading business, even if trades are frequent. If so then an election to make a revenue loss is an option.

 

Rob makes good points. Not all borrowings are tax a deductible and foreign currency denominated shares could be a great example.

eg :
- Shares held for resale at a profit but not a share trading "business". The Fx value may well be incorporated into the calc of the gain / loss
- Shares held for a period which generate investment income from divs and also generate a CGT gain or loss may be treated differently to shares which are bought without expecatations of dividends.
- CFDs which are treated differently
- Employee share plan shares

There is never a single answer. Personal advice generally helps in this area.

 

Forex Trading as in like trading stocks.
What if I have no income for this year, and properties are negative geared, so where does it goes?

Does my income go below 0?

 

Love the banner ads!

lol.

 

Possibly...That would be the tax loss that carries forward

 

Does the loss in trading forex and stocks go against offsetting a future income? or only offsetting gains in trading forex/stocks?

 

Generally speaking, if a capital loss occurs it carries fwd and only offsets a future capital gain. If the future cap gain is a discount type gain the loss comes off the total gain before the 50% discount is calculated not after.

 

Can a capital loss in forex offset a capital gain in property?

 

Yes

 

The only (general) limitation to offsetting gains and losses is where collectibles are involved. A CGT loss on a collectible must offset a gain on collectibles or it cannot be used. And some special rules for trusts (that I can quickly think of)

 

Sigh, so capital loss cannot offset income stream or anything like that.........

 

What do you mean?

 

You still have not clarified the precise circumstances of a forex 'trading' loss.

By default, forex gains & losses are on the revenue account unless an exception applies.

Exceptions includes foreign currency accounts primarily with a low balance or for private or domestic savings as opposed to transactions.

Another exception may be in relation to acquisition or disposal of capital assets, but an election may be available to treat as being on the revenue account.

If no exception applies, losses may be deductible.

It is taking too long trying to discover precisely what is happening. You should consult a specialist and make full disclosure to enable an informed opinion to be given.

 

Forex trading (like in IG markets) loss cannot be deducted from salary, right?

 

Wrong.

but whether this applies in your case or not will depend on the circumstances.

 

Could you provide an example where it applies? I'm confused

 

FFS let me be blunt....get personal advice. Do you expect a skilled professional will post to a free website to tell you how to save $ for free....Pay and find out. I would pay Rob, Terry or whoever for the advice !!