Loans & put options

Discussion in 'Accounting & Tax' started by Rob G, 19th Jul, 2007.

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  1. Rob G

    Rob G Well-Known Member

    Joined:
    16th Oct, 2015
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    Melbourne
    Just noticed some interest in people taking out put options over their share portfolio - must be the economic outlook.

    These are usually capital assets (contracts) to investors and the expenses are not deductible but add to the asset cost base - or if the options are exercised then form part of the costs/proceeds of the shares sold.

    If borrowing for the option purchase, consider keeping it separate from your general investment loan accounts to avoid interest deduction problems.

    Cheers,

    Rob