Join our investing community

Loans & put options

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

  1. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    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