My late brother left a lot of nab shares in my name. It pays 40,000 every 6 months into my account. Do I pay tax on this? And if so, is there a way around it....Eg. take shares in lieu of dividends then sell the stock dividends....Help appreciated.
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My late brother left a lot of nab shares in my name. It pays 40,000 every 6 months into my account. Do I pay tax on this? And if so, is there a way around it....Eg. take shares in lieu of dividends then sell the stock dividends....Help appreciated.
Sorry to hear of your loss.
Yes, you are required to pay tax on dividends received from investments in overseas companies. If you use a dividend reinvestment plan, you still have to pay tax as it is considered income.
so the dividends are taxed twice. Once in Australia and again in NZ where the net dividend has to be declared as income for NZ tax purposes. Also, we do not have access to franking credits.
If this amount is included in the 17-18 tax year and any tax credits you have do not reduce tax payable to under $2000-$2500 then provisional tax will need to be worked out for the following year. No biggie. If you are receiving it in the 18-19 tax year you may still want to think about voluntary payments as it may be quite large to leave for a year.
Whilst on the matter of Franking Credits, did I hear something a while ago that Labour would take a look at allowing FC's to be treated similarly to IC's? Or was I having a discussion with myself......
I'm looking to dip my toe into the odd penny stock or two on the ASX. Can someone please provide guidance on taxation when selling in future? Thanks in advance.
Open a Sharesight account and it's all be done automatically. Trading advisable as I'd not recommend a penny stock for investment. First in first out, so the first share you buy is the share you sell first, you can't to my knowledge pick what parcel you are selling.
Penny stocks as a general are not about the destination but journey there. Buy when it's a dog and no-ones interested. Sell down on the news and you'll have a chance of gains. If you think they're actually going to become a mine or producer or anything the odds are not even worth a bet
Listen to every word of this.
https://www.youtube.com/watch?v=OoIPQEbuwaM
Good luck!
Thanks t.rex! May the market forces be with me.:eek2: