No matter which way you look at it, nothing in life is certain except for death and taxes .... at least that's how the saying goes.
This tutorial is designed to provide you with information so that when tax time comes around, you have everything ready to go in only a couple of simple steps.
The topics covered in this tutorial include how to print Stator reports and which reports are suitable for your accountant at tax time.
TAX MODULES
Stator comes with a free "Tax Module" which contains taxation rules for various countries. The tax module within Stator is designed to provide you with a "taxable" amount for each trade.
Please note that the "taxable" amount is not the actual tax to be paid but the amount of capital gains which will be "taxed" for each trade.
This is better illustrated with a simple example:
(This example uses an Australian taxation rule however if your country has similar taxation rules regarding capital gains, Stator will provide the correct result for each of your trades)
John sells a parcel of Commonwealth Bank shares which he owned for two years. The capital gain on John's Commonwealth trade is $5,000 however he is eligible for the capital gains discounting rule in Australia, as a result of this rule, the taxable amount reported by Stator is $2,500 becuase this is what will be "taxed".
The rule states that any trade which is held for more than 12 months is eligible for a capital gain reduction of 50%
For more information regarding tax modules within Stator please refer to the following help file topic:
Managing your Portfolio/Tax Modules/[Entire Topic]
WHAT REPORTS SHOULD I PRINT AT TAX TIME
Stator provides a wide range of pre-designed reports which allow you to keep paper records of your trading activity. When it comes to tax time, you only need to print out a maximum of four reports in order to satisfy your accountant.
Please bear in mind that this tutorial assumes that you are classified as an "Investor", requirements for "Traders" may involve printing additional reports, all of which are provided in Stator.
Stator reports are accessed by clicking on the "Reporting HQ" item of the main Stator treeview. The "Reporting HQ" section provides easy access to all the Stator reports.
Traditionally, your accountant requires the following information at tax time:
1. Information of closed trades for the financial year.
2. Income received from Dividends or Trust Distributions.
This is enough information for an accountant (along with other non-investment related information) to prepare your taxation.
The following topic discusses each of these requirements in more detail.
Systems, Sub-Consolidated or Consolidated?
For the purposes of taxation, your accountant is not concerned that you trade using three or four different Systems, i.e. one for a moving average crossover, one for CFD's, one for price breakouts and another for mining stocks.
For the purposes of taxation, we recommend that you print all the reports from the "Consolidated" section of Stator. The benefit of this is that all trades, income which occurred for the financial year are provided on the one report.
INCOME RECEIVED
Stator allows you to track income received from both dividends and trust distributions. If you have received income during the financial period from either of these sources you may be eligible for taxation concessions through imputation.
You should print each of these reports (as applicable) for your accountant:
1. Income - Dividend Summary (by Period)
2. Income - Trust Distribution Summary (by Period)
CLOSED TRADES
We recommend that you print two different reports to provide information related to capital gains/losses for the financial period.
1. Closed Trades Summary
2. Taxation Summary
Although the "Taxation" report does provide a comprehensive record of your capital gains/losses for the financial period, we find that the Closed Trade Summary report provides supplementary information which your accountant will find useful when putting together your taxation return.
PLEASE NOTE:
Your accountant may request additional information depending upon your own individual circumstances. This tutorial is provided as a guide only and is not intended to suffice the information required by your individual accountant.
If you have any hesitations, please consult with your accountant.
|
|
|
