People with a Lot of Capital Gains and Losses, How Do You Do Your Taxes?

TimApple on 08/02/2021 - 22:33

This year is the first time I have ever really realised a large sum of capital gains and losses ($10,000+). Previous years it was pretty small gains and small deductions. My deductions are pretty standard and quite small. Largest is usually work phone or computer.

I usually don't use tax agents but tempted to do so this year just in case I missed some things. For those of you on a similar boat, what do you do? Do you do this yourself? Any tips if you do this yourself? Also, have you been audited after doing such big items?

Poll Options

  • 23
    I do it myself
  • 17
    I use a tax agent
  • 2
    My taxes are way too boring and don't need professional advice
Financial

Comments

  • SBOB on 08/02/2021 - 22:35

    If you already know your CGT events you likely have the info you need (buy/sell/dates etc) to be able to do it yourself.
    If it's crazy number of trades like crypto there are sites that will collate that and calculate each trades win/loss etc if need be.

  • Trying2SaveABuck on 08/02/2021 - 22:38
    +1

    My wife is an accountant so she does it before i met her i had a tax accountant

    • SF3 on 08/02/2021 - 22:42
      +12

      You married her, so you don’t have to pay for a tax accountant anymore, but she is now your CFO.

      • Trying2SaveABuck on 09/02/2021 - 10:12
        +1

        Bahaha

      • pharkurnell on 09/02/2021 - 10:25

        Youd stick with the tax accountant. Much cheaper to get rid of.

  • thatonethere on 08/02/2021 - 22:39
    +2

    If you are worried get an accountant to do it once. About $500. Them copy their work for future years (claim the cost of account once the year after you use them).

    • Donaldhump on 09/02/2021 - 00:10

      Or pay them in advance on June 30

  • Tiredman on 08/02/2021 - 23:04
    +3

    I used Sharesight for most of them. Still need to sort out my crypto daily trades. Not looking forward to that. Hundreds so far this year.

    • innov on 09/02/2021 - 13:31

      Sharesight also does crypto

  • 88mph on 08/02/2021 - 23:04

    If it's shares, mytax has a good inbuilt calculator, used it for years. If you passed high school maths, you can do it.

  • Donaldhump on 09/02/2021 - 00:10

    Multiple free Sharesight accounts, as they have a max of ten holdings, reconciled against a beefy spreadsheet.

  • JimmyF on 09/02/2021 - 00:13

    This year is the first time I have ever really realised a large sum of capital gains and losses ($10,000+). Previous years it was pretty small gains and small deductions

    Large or small, its all the same…… Just more zeros.

    If you can do 'small' CGT then you can do the large ones too.

  • Meho2026 on 09/02/2021 - 02:44

    Your losses can only be offset against capital gains, not your income.
    You’re supposed to report your losses in the financial year they occur even if you have to carry them forward to offset against gains in future years.

  • Seraphin7 on 09/02/2021 - 09:41

    There's a couple of things in your post.

    Firstly, assuming the only thing that has changed is you've had a CGT event … simply follow the bouncing ball and include it in the return. You'll be assessed for tax on it based on the combination of your marginal rate and any GCT discount you might be entitled to. The fact you've had a CGT event doesn't suddenly change anything else.

    Secondly, you seem to be implying that even absent the CGT event you have perhaps been conservative on your deductions? There may be some others lurking, but the probabilities are that if you are a humble wage earner who does little other than earn, consume, and invest the leftovers without anything funky going on, you're unlikely to suddenly gain a windfall through deductions.

  • narbe on 09/02/2021 - 09:50

    Just remember cgt exemption if held more than a year. Otherwise include all your subscription to news and what not. Office equipment can be deductible and any trips to AGM.

    Not like I go to any.

    In any case as a general tax payer it's really hard to escape. ATO has access to ASX as well now. So every trade and dividend is inescapable sometimes they miss DRP and share offers.

    • TimApple on 09/02/2021 - 20:12

      Thank you. I do hold it for more than a year. I didn't go to any AGMs.

      My shares with capital gains were from the US stock market, so my broker don't have an automatic pre fill to ATO, I think. Which is kind of a pain.

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