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Thread: Tax advice

  1. #61
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    Quote Originally Posted by Gringo View Post
    Does anyone know if you can claim travel expenses to an AGM as an income-focused share investor (not a trader), like you can travel to inspect a rental property?
    I believe you can in Australia, as long as the company pays a dividend.
    Thanks
    Not a lot of information to go on but I would opine that the trader/investor distinction isn't the important factor. The main question is are you in the business of share investing. Obviously you have an investment or you would not be invited to the AGM but are you in the "business" of investing? To claim expenses for income tax purposes you need to be in "business" which depends on many factors such as the extent of the activity undertaken and the likelihood of making a profit. For example if you have a $10,000 investment in a UK company and you want to fly to the UK for the AGM I would suggest the airfares and hotel costs would not be deductible.

  2. #62
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    Quote Originally Posted by t.rexjr View Post
    Rental properties have two parts. 'Property manager' and 'investor'. The investor can't claim the travel expense as that would be a claim against capital, of which there is no taxable income. The 'property manager' can claim said expense as they are in the business of renting properties and producing a taxable income.
    Have to say I've not heard that one either.
    Certainly a non-issue if the owner (investor) is the property manager, looking after their own rentals.

  3. #63
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    Quote Originally Posted by Gringo View Post
    Have to say I've not heard that one either.
    Certainly a non-issue if the owner (investor) is the property manager, looking after their own rentals.
    Ignore it. I thought I was offering a logic test but clearly whats logic in my mind just confuses others...
    Last edited by t.rexjr; 27-08-2018 at 10:42 AM.

  4. #64
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    Quote Originally Posted by t.rexjr View Post
    Ignore it. I thought I was offering a logic test but clearly whats logic in my mind just confuses others...
    You should’ve have known better mate that giving tax advise on sharetrader is not a good idea ..lol

    Last place I’d come seeking advice on such matters
    “In a roaring bull market, knowledge is superfluous and experience is a handicap.”

    –Benjamin Graham”

  5. #65
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    Quote Originally Posted by Aaron View Post
    Not a lot of information to go on but I would opine that the trader/investor distinction isn't the important factor. The main question is are you in the business of share investing. Obviously you have an investment or you would not be invited to the AGM but are you in the "business" of investing? To claim expenses for income tax purposes you need to be in "business" which depends on many factors such as the extent of the activity undertaken and the likelihood of making a profit. For example if you have a $10,000 investment in a UK company and you want to fly to the UK for the AGM I would suggest the airfares and hotel costs would not be deductible.
    Thanks Aaron. That makes sense. Would like to find where the exact guidelines are on the IRD website, but no joy there. Might need to visit Mr CPA...

  6. #66
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    Quote Originally Posted by Gringo View Post
    Thanks Aaron. That makes sense. Would like to find where the exact guidelines are on the IRD website, but no joy there. Might need to visit Mr CPA...
    Like many tax laws I don't think there are clear guidelines. There are a number of cases that have gone to court where the issue is discussed that will give some guidance but I think there is some grey area. If you have a lot invested in a number of companies and you spend a significant amount of time researching and monitoring your investments and you make a profit after expenses you are more likely to be in business, but like Winner69 says best to get your advice from an expert.

  7. #67
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    I would have thought that if you are going to claim your expenses to go to the AGM then you would have to declare the profit if/when sold as well, as you are claiming an expense to derive income, so you must declare that income, not sure if declaring just the Dividend would suffice.
    Not advice just logic (to a degree) but I would check with an accountant or you could ring the IRD and put a hypothetical scenario to them, they may give you a straight answer or a "it depends" depends on what and see if it applies??
    You can still ring them anonymously I think.

  8. #68
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    Quote Originally Posted by Jay View Post
    I would have thought that if you are going to claim your expenses to go to the AGM then you would have to declare the profit if/when sold as well, as you are claiming an expense to derive income, so you must declare that income, not sure if declaring just the Dividend would suffice.
    Not advice just logic (to a degree) but I would check with an accountant or you could ring the IRD and put a hypothetical scenario to them, they may give you a straight answer or a "it depends" depends on what and see if it applies??
    You can still ring them anonymously I think.
    I would have thought it would depend what business you are in. The business of investing long term for dividend income or trading shares for profit. Whether people are investors or traders often seems to depend on if the markets are going up or down as a long term investor can't claim a capital loss if their investment goes down in value and a trader has to pay tax on increases that would be considered capital gains and non-taxable for the long term investor. You need to know what business you are in before you can correctly calculate taxable profits and losses and what expenses you can claim. You can probably split these activities but there are a million threads on this site discussing that issue no need to rehash it.

    P.S. just in case it is not obvious my statement re the market up or down and trader or investor distinction is a light hearted dig at all the bull**** artists of this world. No one on this site of course.
    Last edited by Aaron; 27-08-2018 at 05:14 PM.

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