As a salaried employee, what are your options to reduce tax?

Discussion in 'Wealth Creation & Management' started by SpacePete, Jan 20, 2015.

  1. Ouch

    Ouch Active Member

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    Was commenting not on you but on SilverPete's change in 2 days from "bad shit is coming"/"market volatility is up" to being interested in a highly leveraged product.
     
  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    You are correct about ex div dates. This is a hypothetical of methods I use. I used to use UBS Z-series endowments for much better leverage, but the same applies for instalments.
    As for the tax deduction, well done... I was wondering if anyone would pick up on this. I know it isn't technically correct. However, like you said it is a bit more complicated... too complicated for the ATO to figure out..... trust me, I tested them out on this for years. ;)
     
  3. Ouch

    Ouch Active Member

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    Yeah looked too good to be true at a glance without doing the maths. 4.3k tax deductions for holding a security at risk for 2 weeks? Imagine the deductions if it was held for a year. This would be a tax-deduction-generating machine! :lol:
     
  4. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    It used to be much better using z series - around 50% of outlay. :D
     
  5. trew

    trew Active Member Silver Stacker

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    Ummm...I may well be wrong here, but while there might be prepaid interest in there somewhere, you assuming the difference between the final instalment and the current market price is prepaid interest is drawing a rather long bow.

    And just because you held the warrant for a couple of weeks doesn't necessarily mean you are entitled to the prepaid interest either. The original holder of the warrants would most likely have claimed the interest as a deduction. Every person who buys the warrants can't claim the same interest.
    Does that mean if you bought and sold the same warrants 10 times over a period of 6 months you could claim 10 x $4,300 prepaid interest ?

    The ATO may let it go on a return but it might be picked up in a more thorough audit. Assuming the ATO has any audit officers left that is.
     
  6. bradsw57

    bradsw57 New Member Silver Stacker

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    I dunno about anyone else, but I found getting sacked worked wonders for me .... :(
     
  7. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    An estimate while typing on an iPhone at an airport, yes.
    A long bow, no. The market maker (issuer) will ensure it is priced in. They also issue a statement indicating the interest/fee component.
    Yes it does. The key point is you hold it over the EOFY, and you are entitled to the lot for that financial year. As mentioned above, the following financial year becomes more complicated, but if need be, just rinse and repeat. It was pointed out that this was a short-term method for a tax break, and is especially good for offsetting capital gains.
    No.
    :cool:
     
  8. ShinyStuff

    ShinyStuff New Member

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    a few years ago i approached my hr dept to say that i wanted no tax taken out of my pay each fortnight, and that i would deal with it at the end of each financial year. my thinking was that is a small business could have an annual bill, why couldnt i right? i would then put it into my mortgage as an extra offset. pay a lump sum by redraw.

    they wouldnt have a bar of it. they said that they would be in breach of legislation. i said that paying tax was my responsibility, not theirs. basically, i got nowhere.

    on a tangent.... i thought that our obligation to pay tax was related to our bank accounts. as noone is obliged to have a bank account, i have even thought about closing all mine down and forcing my employer to pay me cash, but i cant see that happening, so i just forgot about the whole thing.

    it is what it is!!!

    shiny
     
  9. dccpa

    dccpa Active Member

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    People have tried that argument in the US. We call those people felons. :)
     
  10. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Is there any truth in this about the IRS?
    http://privateaudio.homestead.com/The_real_truth_about_the_IRS.pdf
     

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