NZ Oil & Gas (NZO)

[blockhead]

looks like same late interest again tonight, no buyes all day above $1.62 and just before 5.00pm they appear at $1.63 - $1.64

[troyvdh]

I would suspect that a financial year is irrelavent.....its "your intention at time of purchase"......tread carefully and pay someone good for advice.

[Casa del Energia]

looks like same late interest again tonight, no buyes all day above $1.62 and just before 5.00pm they appear at $1.63 - $1.64

I don't think it's just 'late interest'. Have been watching this for two days - steady but subtantial buying all day; last nights jump was just brokerage crossing up at end of day. Same pattern tonight. And yet.. no SHH notice.

Theories anyone?

Oh - and about tax on capital gains - no tax for unrealised stuff UNLESS its overseas shares held by private individuals with greater than 50k worth - then its 5% tax. And to make matters worse - there's no credit if you make a paper loss (Ratbags)

[777]

A trading gain is different to a capital gain. dsurf states he is "technically" a trader. The fact that he has deducted interest payments against previous income no doubt confirms this. You can deduct interest only against income producing assets. Shares producing a regular dividend would qualify but NZO over the past few years have not indicated that.

Personally I pay tax on my realized/unrealized profits/losses each year. Some years I pay tax others I get a refund.

Any discussion on this topic is going to get all sorts of "bush accountants" theories. An hour with an expert is worth paying for.

[Mick100]

Personally I pay tax on my realized/unrealized profits/losses each year. Some years I pay tax others I get a refund.

.

Why do you pay tax on unrealised profits?
Sounds like your the person who needs to see a financial advisor

[777]

Why do you pay tax on unrealised profits?
Sounds like your the person who needs to see a financial advisor

Because then I can claim all my costs incurred against them. Interest,magazines,internet,computer depreciation,telephone(part of), brokerage, meeting expenses etc etc.

It's tidy and the IRD don't complain.

Financial advisors know zip about tax!

Tax experts need to be qualified people.

[shasta]

Because then I can claim all my costs incurred against them. Interest,magazines,internet,computer depreciation,telephone(part of), brokerage, meeting expenses etc etc.

It's tidy and the IRD don't complain.

Financial advisors know zip about tax!

Tax experts need to be qualified people.

777

Individuals are treated on a "cash basis" not accrual basis, therefore only realized gains are taxable (& losses claimable).

The IRD won't complain about you paying more tax now, just be careful in future years that this doesn't come back to bite you.

NZO would have plenty of shareholders sitting on unrealized gains.

I presume many here (like Digger, Blockhead & co) are buy & hold long term investors?

Sorry to be off topic - 777 Pm me if you have any questions

[fish]

[QUOTE=shasta;216299]777

NZO would have plenty of shareholders sitting on unrealized gains.

I presume many here (like Digger, Blockhead & co) are buy & hold long term investors?

Buying with the intention of being a long-term holder should make me bullet -proof from the point of view of the IRD and enable the best tax efficiency .
For the last 25 years -since emigrating to NZ I have worked long and hard and always been in the highest tax bracket .
This year my tax bill will be a lot less-I might even be in a low tax bracket-yet my gross earnings should be higher than ever
Using the ASB margin trading account I have bought a lot of NZO with the intention of long-term holding and no trading .
NZO have stated they will pay a reasonable proportion of earnings as dividends .
Hence I have borrowed to buy an income producing asset and all interest is tax deductible-as would any other expenses involved in this .
In general I agree with most of the advice given on this thread not to borrow to buy shares.However anyone that has an income that is higher than they need for living expenses and wants to invest in nzo this scheme is a good way of making it tax efficient .

[shasta]

[quote=fish;216320]

777

NZO would have plenty of shareholders sitting on unrealized gains.

I presume many here (like Digger, Blockhead & co) are buy & hold long term investors?

Buying with the intention of being a long-term holder should make me bullet -proof from the point of view of the IRD and enable the best tax efficiency .
For the last 25 years -since emigrating to NZ I have worked long and hard and always been in the highest tax bracket .
This year my tax bill will be a lot less-I might even be in a low tax bracket-yet my gross earnings should be higher than ever
Using the ASB margin trading account I have bought a lot of NZO with the intention of long-term holding and no trading .
NZO have stated they will pay a reasonable proportion of earnings as dividends .
Hence I have borrowed to buy an income producing asset and all interest is tax deductible-as would any other expenses involved in this .
In general I agree with most of the advice given on this thread not to borrow to buy shares.However anyone that has an income that is higher than they need for living expenses and wants to invest in nzo this scheme is a good way of making it tax efficient .

Fish

I too had NZO on margin loan, but that was during the "bull market".

I don't use margin lending during a "bear market", way too risky!

ASB Sec had NZO on 50% loan prior to production!

[Casa del Energia]

A trading gain is different to a capital gain. dsurf states he is "technically" a trader. The fact that he has deducted interest payments against previous income no doubt confirms this. You can deduct interest only against income producing assets. Shares producing a regular dividend would qualify but NZO over the past few years have not indicated that.

Personally I pay tax on my realized/unrealized profits/losses each year. Some years I pay tax others I get a refund.

Any discussion on this topic is going to get all sorts of "bush accountants" theories. An hour with an expert is worth paying for.

Whoops - sorry, I missed the 'technically' a trader statement. (But one should check with your local CA on this as it gets a little grey where the crossover is - - besides - your CA often has a good relationship with the local IRD dude and can swing you a 'good result' if he/she/it is any good. Now - enough of this tax talk - really off subject.)