Making a loss on shares

Suppose I buy 1000 shares say Cabcharge at $2 each so pay $2000

A few months later they are a $1.50 each and I decide to sell them , making a loss,what kind of claim in tax can I get if any?

Is there any tax deduction for this ?

 

This will be an interesting thread.

 

I'm glad you find it interesting,I am thinking of selling some shares that are going down eg Cabcharge

 

Can be offset against capital gains not income. If no cap gains then carried forward until you have some.

 

It depends on your intention when you bought the shares and the way in which you deal with the shares.

The most likely answer is that you have a capital tax loss that can be offset against a capital tax gain.

If you have no such gain the loss will be carried forward until you have such a gain.

 

Interesting because many investors don't acknowledge paper losses.

The mantra is never sell. Do you have to sell?

PS
I know zip about shares

 

Here ya go.

Capital gains tax

Note that the brokerage for the buy is part of your cost base and brokerage for the sell reduces the sale proceeds.

 

Neither do I, which is why I use LIC's.

As for paper losses, I have plenty of those but I'm not fussed by them. For a number of tranches I have purchased over the years, the dividends I have received have covered the actual purchase cost so I'm comfortable with the situation.

In any event, on my demise, the cost base is reset to the price on the day of my death. As the assets will then be in a Testamentary Discretionary Trust, the CG will at that stage be zero so my beneficiaries won't even know of any CG and that's a good thing - plus they are getting it despite having done nothing to actually accumulate those assets. The delights of accounting.

As for the never sell, many do, especially those who are well versed in Technical Analysis.

 

Oh, and about attitudes while I think about it.

Ask a people what s/he this another is worth.

One may say, I think s/he is worth $10M.

Another may say I think s/he is worth $100k a year.

I'm in the latter group.

 

Yes....Cant live off bricks and mortar

 

This count as a capital loss you need capital gain to offset it or it gets record on your return as capital loss for the year and you can offset it in future years if you don't have one to offset this year.

You can't claim anything on tax with capital loss except offset against capital gain this year or future years

 

I have large share portfolio and many strategies so on any given years I have a lot of capital gain.
then a few months before the financial end I review my portfolio and I cull stock I think has little future or I got it wrong and I get rid of it and recycle my capital and offset against my gains

so I always end up with rock solid business every year and pay tax in CG for whatever left over to the tax man.

I don't hold on to dogs, think of a strategy to get rid of it and use the capital for better business

When I start out I just buy and hold and sometimes I got some dogs and I hold it for years for fearing to crystalise my loss if I sell them, I said well this is no good what other ways I can recycle this capital and pump into something better.

I then spent a fair bit of time go into other strategies and the rest is history, now a day I am a jack of all trade, buy and hold, options, short, long, short-term trades.

I don't have debt I deal everything with cash and my margin is back with reinforced concrete steel, I have cash to meet market even if market crashed 80%

 

It's classed as a capital loss.
Unless you're a trader.

Unless you use Nutella instead of mortar...