Tax implications for trading forex in Australia?

[Jake]

Hey guys,

Hope you are all well

I'm about to open my second new account with FXDD. Blew my first account as i was a real beginner a year ago but have learned so much in the last year or so & after much demo trading have finally decided its time to take the next step and open another slightly larger account.

Now since I'm 2 years new into forex, the world of tax gets a bit complicated for me. For those of you who have been around trading for years together obviously know a lot more on tax rules/implications for forex traders. I have still not been able to find a decent site that explains all these rules for forex traders in Australia.

I do have a few questions regarding tax and was wondering if anyone could help with them:

1) Depending in which country i open my account, do the tax rules apply for that country?

2) For e.g if i open my account with FXDD, do the US tax rules apply? Also if i had to open this account in US dollars or Aussie dollars, would this make any difference?

3) Do you pay tax for winning and loosing trades? or is it only the gross profit that that tax is calculated upon?

4) Also is tax only calculated when the money gets drawn from the broker and credited into your bank account? Is that only what you declare at the end of the financial year?

Im sorry for the so many questions, this whole thing of tax is a new world to me..

Thanks for any help and advice?

Jake

[mango67]

Good questions Jake,
I too would like to know the answers, so that I can try to avoid paying taxes on the huge profits I am going to make over the next year.

[cunicu]

Hey guys,

Hope you are all well

I'm about to open my second new account with FXDD. Blew my first account as i was a real beginner a year ago but have learned so much in the last year or so & after much demo trading have finally decided its time to take the next step and open another slightly larger account.

Now since I'm 2 years new into forex, the world of tax gets a bit complicated for me. For those of you who have been around trading for years together obviously know a lot more on tax rules/implications for forex traders. I have still not been able to find a decent site that explains all these rules for forex traders in Australia.

I do have a few questions regarding tax and was wondering if anyone could help with them:

1) Depending in which country i open my account, do the tax rules apply for that country?

2) For e.g if i open my account with FXDD, do the US tax rules apply? Also if i had to open this account in US dollars or Aussie dollars, would this make any difference?

3) Do you pay tax for winning and loosing trades? or is it only the gross profit that that tax is calculated upon?

4) Also is tax only calculated when the money gets drawn from the broker and credited into your bank account? Is that only what you declare at the end of the financial year?

Im sorry for the so many questions, this whole thing of tax is a new world to me..

Thanks for any help and advice?

Jake

Tax implications differ in Aust depends on if Tax Office deems you as a Professional or Full time Trader or not much the same as a punter. Even most accountants have problems with this one. Get sound advice from accountant & financial advisor & keep good records.

Cheers

[raa]

A thing to consider: offshore company and account opened in a name of an offshore company. Then you can pay a dividend tax on money you withdraw from it. But a good question, good because you are already planning to make a massive profit and worrying about being on a radar screen. A positive attitude

[Jake]

Thanks for all the responses, not many folks seem to know the answer to these questions ..An area/subject that's hardly touched on.

Im not sure if Marc posts around here, but would love to know how he deals with it as far as tax is concerned. But then again to give tax advice is illegal unless you are an accountant or otherwise lol

Does anyone know any good accountants/tax advisors around Australia (Melbourne)? From what i know they are pretty expensive to deal with. Charge you per session or something like that

Thanks
Jake