could people sell PGWRA if they don't want to take all up?
must be over 90% i bet
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could people sell PGWRA if they don't want to take all up?
must be over 90% i bet
Your point is very true flyingfox if I had had enough shares. I think by the time I had taken into account brokerage costs of selling and then buying back I would have ended up virtually even. That's why I didn't go to the trouble. I didn't have enough shares to make the 7 cent gain (From 71 cents when I bought) enough to generate a profit. Probably the buying back @ 60 cents I could have gained in hindsight but I guess that's a bit of a learning curve :)
Also I'm trying to stay out of the IRD's radar by not trading shares, but buying for investments. Still fine tuning my strategy I guess.
:)myself bought my first lot at 97c, and reduced average to 58c now.
i haven't done "should do" things as well but in a share market there's no point to feel regret ever,not many people could that's why we are not as rich as buffet mate
BTW, IRD track sharetrading?really i didn't know before.
If they charge for my gain do they pay back if I make loss?I traded more than 30 times last year, only through the transaction history it's really hard to tell i made gain or loss
I don't know if they 'track' share trading. Technically we are supposed to keep 'adequate' (Defined by the IRD depending on how much you owe them I'd say) records so that we can track our overall profit.
I am not completely sure about capital loss being deductible - I'll have to find out. Accounting for investments is a very messy sticky area of accounting. (Especially with all the new rules being constantly brought in an changed.) As to whether you are 'supposed' do file a tax return depends on your motive or reason for buying/selling shares. If you do it to trade then gain is taxable, if you do it for investments then its not taxable. The onus is on the trader to prove that he/she is investing not trading. I think a general rule is that if you buy and sell the same share inside a year the IRD considers it trading. Also the sheer volume can count. I.e. you might have only traded once during the year but with such a large gain that IRD considers it trading.
Hmm I think we are going off topic here but that's a few things that might help. :)
Strictly speaking if you buy shares for the "purpose" of selling them for capital gain. Whicorced to pay tah is pretty much what I do, that gain is taxable. However the IRD basically can't be bothered going after small time traders, instead they look for big time traders, guys who are making 300-400 k a year off trading, and look to set a precedent against them. The IRD is growing in confidence lately and I wouldn't be suprised if there are people being fx on this sort of investing as we speak. Its very difficult if your are a trader, to prove that your not trading for capital gain, so most people when questioned simply give in and pay the tax.
If you use a TA system your particularly vulnerable to being taxed, the second you even mention the word chart to the IRD dollar signs appear in their eyes.
My accountant has told me I will probably be classed as a trader for this FY, but he did say that my capital losses are deductable (luckily my gains are much bigger than my losses). I'd speak to an accountant, unfortunately the rules in NZ are open to interpretation, it's a bit easier over in Australia with hard and fast capital gains tax rules (but then if you're just an investor you're worse off).
this must be a grey area because we keep the record not them , we do the calculations, we clarify the "intention"
We don’t usually just buy 1000 then sell 1000 after a yr, we have to accumulate, reduce or hold according to the price trend
so can I say my intention is investment but adjustment need to be made due to market/economy condition- I did hold the same stock for long term ,just adjusting the volume to avoid loss
The problem is that we have to 'prove' our intention was only for investing not trading. You know the IRD - they'll say you are trading until you prove otherwise. Kinda the opposite to "innocent until proven guilty".
meesham,
try not to claim your losses asyou will allways be classed a trader and have to pay tax.
in the longer term if you get 6 out of 10 companies right that you invest in you should make money.
i would tell your accountant that you see yourself as a long term investor,who is trying to build a nest egg where the dividends that you will receive, will suppllement your income,and help you to be better off in the long term.
to prove your point buy a copy of any of warren buffett,s books and keep it as proof that you are in deed a long term investor.
you know what a long term investment is?.
answer.. a short term investment that did not work out right!!!
good luck. donot forget to lend your accountant the buffett book.
he may believe you.