Thread About Tax on gains

[tosspot]

I cant see any thread in here about tax so thought Id create one.

Basically this is my first year doing trading so the years coming to an end and we have to pay tax.

my question is i've just received 2 dividend in the last few weeks and they were fully imputed. so does that mean I don't have to mention the dividend to ird because tax has already been paid. I assume i will just have to give them the total of my capital gain from trading (all short term) a just pay a simple one of tax on that. Lastly does my student allowance count towards my income so I would have to add student allowance and capital gain together and pay a tax rate on that figure for my capital gain. I haven't worked this financial year so just those two.
cheers

[777]

You would be silly not to include your dividends as they have had tax deducted at 33%. Since you are on a lower tax rate then you would get part of that back

Hypothetically if you were to make a pile of money this year as a capital gain, then would you still be entitled to a student allowance?

[CJ]

Once you have to file a tax return, all income must be included. By being a trader, you fall into this category. Therefore all income, including your dividends will need to be returned. However, as 777 stated, give you probably have a low income, this will be of benefit to you. In any case, as all dividends are received with RWT withheld to the extent they aren't imputed, you should never be worse of, unless it affects your allowance.

Go to the IRD site and have a look at the IR3: http://www.ird.govt.nz/forms-guides/...turn-2012.html

Most of it is pretty easy to work through.

NOt sure how student allowances factor in.

[tosspot]

good to know. thanks for that info.

[Minerbarejet]

I cant see any thread in here about tax so thought Id create one.

Basically this is my first year doing trading so the years coming to an end and we have to pay tax.

my question is i've just received 2 dividend in the last few weeks and they were fully imputed. so does that mean I don't have to mention the dividend to ird because tax has already been paid. I assume i will just have to give them the total of my capital gain from trading (all short term) a just pay a simple one of tax on that. Lastly does my student allowance count towards my income so I would have to add student allowance and capital gain together and pay a tax rate on that figure for my capital gain. I haven't worked this financial year so just those two.
cheers

just as a matter of interest; there is a thread on NZX called "some questions for traders" which may provide additional insight about tax and capital gains for you if you are a trader.
This post is made with the intent of being helpful and nothing else.