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Protected Equity Loan

Discussion in 'Accounting, Tax & Legal' started by catherineW, 20th Aug, 2014.

  1. catherineW

    catherineW Member

    Joined:
    9th Aug, 2014
    Posts:
    8
    Location:
    canberra
    Hi Everyone,

    What is the tax consequences under Protected Equity Loan if:

    (1) at the end of the term, my portfolio of shares value have gone up and i decided to sell the portfolio and the proceeds i use to repay the equity loan and keep the balance.

    (2) at the end of the term, i transfer the shares to the lender in full satisfaction of the debt as a result the portfolio worth less. :confused:
     
    catherineW, 20th Aug, 2014
    #1
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    820
    Location:
    Sydney
    These sorts of things have product rulings usually.

    1. capital gain

    2. capital loss - probably neutral before costs though
     
    Terryw, 21st Aug, 2014
    #2
  3. catherineW

    catherineW Member

    Joined:
    9th Aug, 2014
    Posts:
    8
    Location:
    canberra
    Could you tell me Which ruling so I can refer to it. Thanks.
     
    catherineW, 21st Aug, 2014
    #3
  4. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    820
    Location:
    Sydney
    There are hundreds of these products out there each with their own rulings.
     
    Terryw, 28th Aug, 2014
    #4