Posted: May 31st, 2016

Dave has also indicated that his taxation return for the year ended 30 June of the previous year shows a net capital loss of $10,000 from the sale of shares.

On 5 June of the current tax year he sold for $80,000 a parcel of shares in a newly listed
mining company. He purchased these shares on 10 January of the current tax year for
$75,000. He borrowed $70,000 to fund the purchase of these shares and incurred
$5,000 in interest on the loan. He also paid $750 in brokerage on the sale of the shares
and $250 in stamp duty on the purchase of these shares. Dave has contacted the ATO
and they have advised him that the interest on the loan will not be an allowable
deduction because the shares are not generating any assessable income.
Dave has also indicated that his taxation return for the year ended 30 June of the previous
year shows a net capital loss of $10,000 from the sale of shares. These shares were the only
assets he sold in that year.
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