Sorry if this has been answered before - I can't find it tonight if it has...
If I borrow $x from an investment loan to buy shares
Lets say I sell 6 months later (to avoid 50%CGT discount issues) for $x+y
Clearly I've gained $y, which is declared and paid tax on.
But the critical question: Does $y need to be deposited to my investment loan? $x is the capital, no question there that it must.... but $y?
It strikes me as common sense that it should, for if $y is negative you certainly should... but is it in the tax law? If so, can you point to a provision?
Thanks, Luke
If I borrow $x from an investment loan to buy shares
Lets say I sell 6 months later (to avoid 50%CGT discount issues) for $x+y
Clearly I've gained $y, which is declared and paid tax on.
But the critical question: Does $y need to be deposited to my investment loan? $x is the capital, no question there that it must.... but $y?
It strikes me as common sense that it should, for if $y is negative you certainly should... but is it in the tax law? If so, can you point to a provision?
Thanks, Luke