tax

[Lizard]

I read that fif does not apply if you are a trader...
http://www.ird.govt.nz/toii/fif/how-...tax-threshold/

That only appears to apply to the $50k de minimus level in the link you posted. Did you have another reference regarding the use of fair dividend rate? Would be interesting to know - it has been sometime since I read through the regulation, but I thought it did not materially distinguish.

[david298]

I have a tax query. I trade stock options in the US market so have exchange rate (ER) complications. I am calculating tax on monthly profits/losses based on the varying mid month ER value provided by the tax dept. Is this correct?

Also, how must any ER advantage/disadvantage from opening bal to closing balance in my trading account for the the tax year be taken into account? Is this shown as a tax gain/loss or taken into account in my books of account as a capital gain/loss.

Any advice much appreciated thanks

[CJ]

Also, how must any ER advantage/disadvantage from opening bal to closing balance in my trading account for the the tax year be taken into account? Is this shown as a tax gain/loss or taken into account in my books of account as a capital gain/loss.

Do you hold the account in your own name or in a company/trust. is the balance of all your financial arrangements under $1m?

If in own name and under $1m (the threashold might actually be higher) then you will be a 'cash basis holder' so only return gains as you receive them. I have no idea how that would work as I assume you would only receive the benefit once you close down the account which if you have lots of ins and outs, will be impossible to track the forex component.