Tuen's Blog

Infrequent diary of a procrastinator

Tax Returns Submitted!

Written By: Tuen - Oct• 27•07

I finally finished and submitted my tax returns this week.  The experience was worse than I had expected.  Last year, it wasn’t so bad because we had not completed a full financial year when I had to submit my returns, so there were less transactions.  This year was a nightmare.  With a complete financial year behind me, the number of transactions, including purchase and sales of stocks increased significantly.  Correspondingly, my tax returns became much more complicated, especially trying to work out how much capital gains/losses I made and the corresponding amount of tax I had to pay.  The main difficulty in working out capital gains is that you need to keep track of the purchase and sales dates because you are taxed differently depending on whether you have held onto your asset for more than a year, or less than a year.  And it gets more complicated if say, you bought the same stock at different times, accumulating them and then you sell portions of it at different times as well.  Imagine trying to work out which time periods to choose in order to minimise your tax! 

I’m just glad it’s over for this year.  The task of working out one’s tax returns is so daunting that it almost makes one not want to make money just so you don’t have to bother with the tax submissions.  Almost; but not quite.  :)

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