Book Review > Shares, Derivatives and Taxation 2nd Edition

This is an easy reading book that sticks faithfully to its title. The author is an accountant who has an ability to present complexities in a clear manner.
The reader enjoys a logical flow from point to point. A number of case studies are provided. Tony Compton refers from his own experiences as an adviser, the 'CCH Manual', ATO rulings and recent case law.
The book presents the arguments for being classed as a trader versus a speculator in a coherent manner.
Members of the AIA would find the Chapter on " Tax Deductions of a Share Investor" required reading. Latter Chapters flow on to deal with tax deductions for Share Traders, Futures and Managed Funds.
Negative gearing is discussed candidly with the author reinforcing the golden rule that " the success of a negative gearing strategy is clearly dependent on cash short fall being exceeded by capital growth….negative gearing is a bonus, not the reason to invest."
Latter chapters cover Tax planning, with a deeper analysis of recent legislation and tax related issues. GST is only lightly covered.
The final part of the book is light and informative. Compton interviews various professionals and discusses tax strategies with them.
Geoffrey Hills (a Brisbane based Stockbroker) comments on trading. "The first thing a sharebroker taught me was that we don't make mistakes, we make errors of judgement….things are just bigger than you .Its just that your judgement was not complete."
Is this Book tax deductible? You will have to read the book to find out. The reviewer suggests it would be a worthwhile exercise to do so.