My brother wants to start trading. Is it better for him to open an account as his income is Nil-18200 or another person in family open account, who has income above $100k ?
asking in terms of tax benefits,
Commsec trading account
CI on 12/10/2015 - 22:40
Poll Options
- 12Trading account - no income
- 0Trading account - $100K+ income
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$600 free trading from ComSec
But after that you pay triple or almost double what other brokers charge
Maybe he was working years ago and saved lots money then now retire therefore no income.
My guess is OP may be intended to make use of tax threshold of a family member who has no or low income to minimise tax when profit is made from shares (on investment as a family).
If the brother is a minor, it will be on maximum tax rate.
If brother is an adult, yes, there will be a tax threshold.
If your investment is on big chip shares, they sometimes give fully franked dividends which actually help to lower your personal income tax.
If you invest $1.2 trillion, your brother may do a runner.
I think it all depend on your situation - how close you are, how much to invest, whether you trade for margin or long growth….etc. my guess is to use the threshold, otherwise consult an accountant instead of OZB. : )You pay tax on dividends in the year you receive them, but you tax on the capital gains when you sell them.
Well you only pay tax on the dividends and if/when you sell the shares, if his income is nil he would be needing to earn more than the tax free threshold in either of those to need to pay tax (no chance). So to answer your question - No income otherwise its taxed that the rate of the $100+k rate.
Side question, how is someone with no incoming buying shares, given its like $20 a trade its not really much value buying in small qualities.