Forum Archive Index - February 2000

["Mark Hubbard" <mhubbard@es.co.nz>]

----- Original Message ----- > There is one other point on capital gains
taxes and the IRD.
> If you are a classed as a trader and you set out to make a profit on the
> trades, then you can charge any expenses incurred in making that profit
> against tax.  This includes brokerage fees, subscriptions to journals, for
> example the NBR, and I suspect depreciation on your computer, telephone
> charges isp charges and so on.  They are all legitimate expenses, although
> you have to keep records to show that they are legitimate.
>
> If you buy shares for value investing, with the specific intention of
> holding the shares over the long term in order to gain dividend income,
> then you cannot charge brokerage and losses on share trading against tax.
> Under certain circumstances other expenses are allowable, but at this
point
> you need an accountant.

You're right Nigel, however, the expenses incurred with share trading are
not large, at all, and you will still be more disadvantaged by paying tax on
capital gains, than otherwise. Unless of course you're planning on making
lots of losses (and remember, a tax loss IS a loss).



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