Forum Archive Index - July 2000

[Roger <ramjet@paradise.net.nz>]

Thanks Jesse for your reply.

With regards to your last paragraph (see below), I'm keeping records for
two portfolios, one for share buys for long-term investment and the
other for short-term share trading. This was suggested by Frank Newman
and Phil Briggs in their book 'Making Money on the NZ Sharemarket' (page
326). It may go some way to show your intentions at the time of
purchase.

Re Q2 (claiming brokerage on trading shares not sold as at 31 March),
would I be able to claim it when they are sold even though it was paid
in the previous financial year? As an example, I buy shares 1 Jan 2000
and pay brokerage of $50.00 - then sell them 30 June 2000 (brokerage
$60.00). Would I claim $110.00 or only $60.00 on 31 March 2001?

Appreciate your help.

Cheers.
Roger


"One thing to check with your accountant. From the moment you start
trading, claiming expenses etc, IRD view you as a trader. From my
experience, you will be hard pressed to claim that some of your
transactions are long term non taxable, while others are trades and
taxable. I put this ? to my accountant. What if I have some long term
investments that I buy, as well as short term trades. I  buy XYZ as a
long term hold, but 1 week later, my son needs an operation. I sell the
long termer for a nice gain. It looks like a trade, but my intention was

long. Do you suppose IRD will agree with me? More likely, once you begin

down the traders path, all your transcations will be viewed that way and

taxed accordingly. Something to consider anyway."



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