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3 tax deductions you can make as an investor.

We know, we know. Tax isn’t for everyone! Ren finds it dull, but Bryce and our EM colleague Simon love all things tax. Here’s our promise – it’s just for 1 more week (until next year that is…)

In today’s episode we share 3 tax deductions you can make, if you invest. Please remember this is general advice only – you should always seek help from a tax professional.

Interest payments: If you’ve ever borrowed money to buy shares that are now earning you dividends, or other assessable income, you might be able to claim a deduction for the interest you’ve been paying on that loan. Just remember, it’s only deductible if the interest expenses were for the purpose of producing income.

Management costs: ongoing management fees or retainers, or costs for advice about changes in your investment mix. Ren also discovered that attending investment seminars could potentially be tax deductible – only if it’s about a stock you already own. You could be entitled to claim a deduction for the portion of your expenses that relate to the earning investing income.

Costs for managing your investments: could include things like travel expenses to attend a company’s annual general meeting, fees for investment journals, borrowing costs, internet access, and even the decline in value of your computer.

But not everything is tax-deductible. Brokerage fees and other transaction costs aren’t deductible, though you can use these costs to work out your capital gains tax when you sell. The cost of drawing up an investment plan isn’t typically deductible. We said it once, but we’ll say it again – it really is a valuable idea to talk to a tax professional. If you want some more tips, we’ve published this article here.

Literally the biggest guest we’ve ever had at Equity Mates…

Maddy and Sophie, hosts of You’re In Good Company managed to nab the respected American investor and CEO of Ark Invests for a long, and wide ranging chat – where she shared her thoughts on what makes a quality business, the elements that make a successful leader, and the areas she’s looking to moving forward.

They talked at length about the impact AI will have on young people and their job prospects, and Cathy had four pieces of advice to anyone who wants to stay – as she called it – ‘on the right side of change’:

Do your research and stay informed: use Ark’s research, read their reports, and think about it as not only educational, but informing what you think you might do next. Cathie suggests looking for the opportunities of the future.

Self-education is important: In one of Sophie’s favourite tips, Cathie suggests using Twitter. Look at the people who you follow and respect, and dive into their ‘following’ lists – who are the taste makers who influence them? You’ll expand your own horizons faster than you realise!

Build skills that will be in demand: Cathie suggested paying attention to the stars in your field – observe and and learn from top performers – the skills and strategies they’re employing now are likely to be even more relevant tomorrow.

Embrace AI & seek out emerging sectors: AI technology will start to help us with more menial tasks, freeing up our abilities to work on more creative and stimulating challenges. It’s exciting!