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  1. #1
    Junior Member
    Join Date
    Oct 2021
    Location
    Wellington
    Posts
    2

    Default Tax obligations for traders

    Hi, started investing in shares earlier this year and have been able to get answers to most of my noob questions from a variety of online sources but I am struggling with the tax side of things. I did check the IR3G, IR461, a number of pages in the IRD website and some of the posts in this forum that address tax obligations but still not sure what I need to do to ensure everything is kosher with the IRD. Here's a quick summary of my current situation:
    - Joined a NZ based share trading platform at the beginning of this year
    - Bought shares in companies listed in the NZX, ASX, NASDAQ, NYSE as well as an US based ETF.
    - I do not reach the 50k threshold for FIF
    - I now intend to sell as well as buy going forward and according to the IRD's info I will be deemed to be a trader, rather than an investor, and will have to pay tax on gains. Have I assumed this correctly?
    Question 27 of the IR3 concerns Other Income which includes 'Income from the sale of non-FIF shares'. With the cost of all purchased shares being less than 50k is this simply a question of entering the gains from the shares and ETFs? Apologies if this has already been answered in a previous post but had a good look and couldn't find it. Also, would appreciate being directed to any of the relevant posts in the forum that cover tax for someone in my position. Many thanks

  2. #2
    Dilettante
    Join Date
    Mar 2010
    Location
    Down & out
    Posts
    4,182

    Default

    Quote Originally Posted by Gruffalo View Post
    Hi, started investing in shares earlier this year and have been able to get answers to most of my noob questions from a variety of online sources but I am struggling with the tax side of things. I did check the IR3G, IR461, a number of pages in the IRD website and some of the posts in this forum that address tax obligations but still not sure what I need to do to ensure everything is kosher with the IRD. Here's a quick summary of my current situation:
    - Joined a NZ based share trading platform at the beginning of this year
    - Bought shares in companies listed in the NZX, ASX, NASDAQ, NYSE as well as an US based ETF.
    - I do not reach the 50k threshold for FIF
    - I now intend to sell as well as buy going forward and according to the IRD's info I will be deemed to be a trader, rather than an investor, and will have to pay tax on gains. Have I assumed this correctly?
    Question 27 of the IR3 concerns Other Income which includes 'Income from the sale of non-FIF shares'. With the cost of all purchased shares being less than 50k is this simply a question of entering the gains from the shares and ETFs? Apologies if this has already been answered in a previous post but had a good look and couldn't find it. Also, would appreciate being directed to any of the relevant posts in the forum that cover tax for someone in my position. Many thanks
    Welcome to the forum. This may be of interest to you https://www.sharetrader.co.nz/showth...660-Tax-advice

  3. #3
    Junior Member
    Join Date
    Oct 2021
    Location
    Wellington
    Posts
    2

    Default

    Thank you very much for the forum link iceman.

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