#Trading losses

[buzzzbyte]

Former Sydney FX trader sentenced for falsifying trading entries

Former Sydney Deutsche Bank FX options and futures trader, Andrew Donaldson, has been sentenced in the District Court in Sydney to 18 months imprisonment after pleading guilty to falsifying entries in Deutsche Bank’s internal financial records and systems.

Mr Donaldson, now living in New Zealand, pleaded guilty to one charge of using his position dishonestly with the intention of directly or indirectly gaining an advantage for himself.

The sentence was fully suspended and Mr Donaldson was released on his own recognisance with a condition to be of good behaviour for 2 years and a security sum of $10,000.

‘Dishonest use of position in the financial services industry, in order to gain a personal advantage, threatens the integrity of our financial markets. ASIC will continue to take regulatory action to address this type of misconduct,’ ASIC Commissioner Cathie Armour said.

Between 25 July 2013 to 25 June 2014, while working as a FX, options and futures trader with Deutsche Bank in Sydney, Mr Donaldson made a total of 85 false entries into Deutsche Bank’s internal records. By making these entries, Mr Donaldson was falsely representing to Deutsche Bank that he had made substantial profits of more than $31 million (AUD) from his trading in financial products, including US Treasury Note Futures.

As detailed in the agreed facts on sentence, the direct or indirect advantage that Mr Donaldson sought to gain by recording these false transactions was to falsely increase his recorded profit, and to mask his actual trading losses. He was then potentially able to meet his annual revenue budget, be eligible for larger incentive payments, and promote himself to a prospective employer.

As the entries related to trades that were fictitious and never executed in the market, no external parties were affected.

The Commonwealth Director of Public Prosecutions prosecuted this matter.

[georgeshutcheson]

Offsetting Business Losses

New Post has been published on https://www.fastaccountant.co.uk/offsetting-business-losses/

Offsetting Business Losses

Whether you’re a Sole Trader, Business Partner, or Limited Company, this article breaks down the Options for Offsetting Business Losses and provides practical advice to help you navigate the complexities of tax law in this area. From general loss relief and offsetting against other income to special situations and considerations for Cash Accounting Basis, this comprehensive guide offers valuable insights to make informed financial decisions. Don’t let business losses hold you back — explore the options and find the best solution for your unique circumstances.

General Loss Relief

If your business experiences a loss, there are several options available for offsetting that loss. As a Sole Trader or Business Partner, you can choose to offset the loss against other income in the same year, against other income in the previous tax year, or carry it forward against the same business indefinitely. These options provide flexibility depending on your individual circumstances.

For example, if you have a part-time job in addition to your business, you can offset the loss against your job income in the same year. Alternatively, if this is your first tax year in business and you left a job part way through the year, you can offset the loss against your job income in the previous tax year. If you choose to carry the loss forward, you can offset it against future profits of your business. It’s important to note that if you choose to offset the loss against other income, tax law requires you to offset the entire loss up to your total income.

There are some restrictions for offsetting losses against other income. If you spend less than 10 hours a week on your business, the maximum offset is £25,000. In all other cases, the maximum offset is £50,000. It’s essential to consider these limits when deciding how to offset your losses.

Example: Let’s say your business makes a loss in the tax year 2023-24. You have the option to offset the loss to other income in the tax year 2024-25 or to other income, including your business’s profits, in the tax year 2022-23. This is possible as long as you are not using the Cash Accounting Scheme. Alternatively, you can carry the loss forward to offset it against profits from the same business in the tax year 2024-25 or any subsequent years.

When considering offsetting losses against current or previous year’s income, it’s important to be mindful of your Personal Allowance. Make sure that offsetting the losses doesn’t bring your taxable income below your Personal Allowance, especially if you anticipate making profits in the future. Wasting your Personal Allowance this year or last year could result in paying more tax in future years.

Planning ahead is crucial when it comes to offsetting losses. If you expect your business profits to increase significantly next year, pushing you into a higher tax bracket, it may be more advantageous to carry the loss forward and offset it against future higher-rate profits. Careful consideration of your individual circumstances and future projections is needed to make an informed decision.

Special Situations

There are specific situations where the rules for offsetting losses differ.

During the first four years of running your business, you have the option to go back three years, starting with the earliest year, and offset the losses against your total income. This is known as offsetting losses in the early years of a trade. This provision allows you to utilize losses from the earliest years of your business to reduce your overall taxable income.

If you decide to close your business, you can carry back losses up to three years. This means you can offset the losses against the income you earned in those previous tax years, providing some relief in the year of closure.

In some circumstances, a business loss can be offset against a capital gain made in the same tax year. This can be beneficial if you have other investments or assets that result in capital gains. Offsetting losses against capital gains can help to reduce your overall tax liability for the year.

Cash Accounting Basis

If you operate your business on a cash accounting basis, there are specific rules regarding offsetting losses. Businesses using the Cash Accounting Basis can only carry losses forward; offsetting sideways or carrying back is not allowed. However, it’s important to note that there is a potential trap for businesses operating on a cash basis.

Many small businesses, operate on a cash basis, meaning they receive income and pay expenses in real-time, rather than through accruals. These businesses do not benefit from the Cash Accounting Scheme as their transactions are already recorded on a cash basis. In this case, it may be advantageous to not select the “Cash Accounting” box on the Self-Assessment form. While this doesn’t change the Self-Assessment itself, it provides more flexibility when dealing with losses.

To understand the difference between Cash Accounting and Accruals Accounting, it’s important to note that Cash Accounting records transactions based on actual cash inflows and outflows, while Accruals Accounting records transactions based on revenue earned and costs incurred, regardless of when the cash is exchanged.

Limited Companies

If you operate your business as a limited company, the rules for offsetting losses are slightly different. As a limited company, you can carry losses forward to offset them against future profits. This allows you to utilize the losses from previous years to reduce your overall tax liability in profitable years.

Additionally, if your limited company was profitable in the previous tax year, you can carry the losses back one year and offset them against the profits you made in that previous year. This can provide immediate relief by reducing your corporation tax liability for the year in which the losses occurred.

If your limited company ceases to trade, you have the option to carry losses back three years. This means you can offset the losses against the profits of the company in the three years preceding the year in which the business ceased trading. This can be beneficial for winding down a business and mitigating tax liabilities.

It’s essential to note that these offsets apply to the profits of the limited company for corporation tax purposes and not against the personal income of the director or shareholder. Consultation with a tax advisor is recommended to fully understand the implications and options available for offsetting losses as a limited company.

In conclusion, understanding the options and rules for offsetting losses is crucial for managing the financial impact of business losses. Whether you are a sole trader, business partner, or operate as a limited company, there are various strategies available to utilize losses and mitigate tax liabilities. By considering factors such as personal allowances, future profits, tax rates, and the specific circumstances of your business, you can make informed decisions to offset losses effectively. Seeking professional advice from a qualified tax advisor can provide further guidance tailored to your individual needs.

[junesfool]

mamaaaa,,, lesbians on strawpage (idk what they put in that brush but I love it)

[critterfloozy]

Oh god Silver saying that he's unburdened by what has come before. The idea that being separated from family, from history, from tradition, from heritage as a boon, that exposure to different people and different ways of life and points of view is corrupting. The amount of erasure and horror involved in that one turn of phrase, kindly said.

(And the way that's how empires and hegemony work - how America works. Residential Schools and and Ford's classes for workers and one of the horrors of chattel slavery being the separation of families and punishment for traditional beliefs)

Above his paygrade, he doesn't have to think about it.

[violent138]

HC that Crime Lord Red Hood routinely donates medical equipment, money, and well-trained black market medics (formerly employed by gang leaders he took down) to Leslie's clinic. He's also obsessive about updating or improving the generators at the clinic and wears her down in a way that Batman couldn't.

[republicansaredomesticterrorists]

The orange doofus is creating a recession. It’s already predicted to happen this quarter with the potential loss of over 1.5 million jobs.

This madness needs to stop immediately.

[rosered-schneeweisschens-sis]

as an American, I hope this works.

[r0bzombixx]

i wanna sleep in your car while youre driving,

lay in your lap while im crying

[everlastingday]

*

[iryonin]

sometimes i think about the fact that kishimoto genuinely had no idea what to do w sakura in the beginning/that he accidentally gave her a bunch of kickass affinities he just never expanded upon bcs he randomly 1 day decided she was gonna be a mednin in the end (after tsunades intro)

[tomorrowusa]

By plunging the world into recession and possibly depression, Donald Trump is inadvertently causing the price of oil to drop. With less economic activity and reduced international trade, there's less demand for oil – and so the price falls.

On January 21st, the first business day after Trump took office, the price of US West Texas Intermediate Crude closed at $75.89 a barrel; when I checked a few minutes ago, WTI Crude was at $60.24.

This drop in the price of oil is causing problems for Putin. Russia's biggest exports are fossil fuels. The oil price fall means less revenue to fund Putin's war of aggression in Ukraine.

The Kremlin on April 7 announced it is “closely monitoring” oil markets after the price of its key export grade, Urals crude, plunged towards the $50 mark. “We are very closely monitoring the situation, which is currently characterized as extremely turbulent, tense, and emotionally overloaded,” Kremlin spokesperson Dmitry Peskov told Interfax. Peskov attributed the price decline to "the US decision to introduce tariffs for most countries in the world." Urals crude fell to $52.76 per barrel at the Baltic port of Primorsk on Friday, according to Argus Media data cited by Bloomberg. This is well below the $70 per barrel benchmark used for Russia's 2025 budget planning. With oil and gas revenues accounting for nearly 30% of budget proceeds in January-February, according to government data cited by Bloomberg, the price decline poses significant fiscal challenges. A price collapse could destabilize Russia's federal budget, as military expenditures for the Ukraine conflict have driven government spending sharply upward in early 2025. If price fall below the $50 mark, it would push Russia's key oil export to its weakest level in nearly two years.

Let me inject that WTI Crude is a premium variety with lower density and lower sulfur content which sells for more than Urals Crude – Putin oil. Brent Crude is another desirable premium oil variety found under the North Sea. Urals Crude is a mixture of heavy sour oil from the Urals and lighter Siberian oil. It brings a lower price than Brent or WTI.

As recently as late March, global oil prices were actually rising, driven by U.S. sanctions on Iran and ongoing discussions on a potential ceasefire in Russia's war in Ukraine, with Brent crude reaching $72.52 a barrel, while U.S. West Texas Intermediate crude increased to $68.68. Despite this, Russian oil and gas revenue fell by 17% year-on-year in March to 1.08 trillion rubles ($12.8 billion), as forced discounts on crude and a stronger ruble hit budget inflows, the Moscow Times reported on April 3, citing Russia's Finance Ministry data. The ministry said the government lost roughly 230 billion rubles ($2.7 billion) in tax income compared to March 2024, with oil and gas revenues accounting for one-third of the total state income. Energy revenues remain a key source of financing for the Kremlin's war against Ukraine, despite Western sanctions and a price cap designed to limit Moscow's earnings from oil exports.

So Trump's trade war reduced demand for Putin's shitty oil and is causing him to scrape the bottom of the barrel – pun intended.

[autobotmedic]

[ this is the part where i hit everyone with my own personal childhood nostalgia and i say that if ratch lost everything/finally did reach breaking point

he would just be vict.or fries from btas/bat.man: subzero with his own priorities only

[bedabug]

nancy pelosi's legacy will be her staunch refusal to let any young dems into leadership positions preventing young dems from getting enough experience to be capable of running for higher office

this is why we have a complete void of dems between the ages of 40-60 who are ready and able to run for higher offices, because for 20 something years she prevented anyone younger than her from ascending to a higher standing

name a dem between the ages of 40-60 who has a high enough national profile to run for president other than mayor pete. there's like 4 i can think of immediately and thats as someone who is much more tuned into politics than your average person

there's a lot of reasons to loathe pelosi but i think the lasting damage this will have on the party is being overlooked right now

[fungi-rat]

art dump

Jax

art trade with my irl friend

ranboo from generation loss (my brother was forcing me to watch it)

slimesicle from generation loss

rambley racoon (indigo park)

among us

I’m working on a good post soon

[artbyscarcello]