loss against tax

[mikejarvis]

Could someone help me.

I sold some shares at a loss in March last year(last tax year).
Can I set those losses against tax paid this tax year?

If I can claim, and say I have paid $10,000 tax and lost $10,000 does
that mean I will get a refund of $10,000.

What evidence do I need when I submit my tax form.

Thanks for your help


Mike

[whiteheron]

mj

Firstly , are you a long term investor or a trader ?
If a long term investor then there are no tax implications , you simply have to take the loss on the chin
If you are a trader the loss will be tax deductable in the year in which it was incurred

Losses , if deductable , can be set off against other income not directly against tax
They reduce your overall income and consequently your tax

But , if you are a long term investor it would not be wise to try to claim a deduction as this could lead to profits on other shares being taxed as well , so unless your original intention was to trade , as opposed to invest , be very cautious before trying to claim a deduction

[TerryA]

I think that the some one to help you is a good Tax Accountant and that the cost , in view of your losses, would be money well spent. Claim once and you may be labelled as a Trader forever.

The quality of this advice, like all in these fora, is related to what you have paid for said advice.

[Steve]

If you have lost $10,000 through share 'trading', then you are allowed to deduct this amount from your other taxable income. Your refund will be relative to your personal tax rate:

19.5% = $1,950
33% = $3,300
39% = $3,900

You won't get the full loss back as a refund...

[whatsup]

mikejarvis, be careful ,if you offset tax losses against your income and achieve a offset, that in future when youve learnt the trade (of being a succesful share trader) that the IRD doesnt "reel" you in and demand "their" share of "your" capital gains/profits! Some times its better to absorb your "losses" so you "keep" "your" capital gains by not being a "share trader".