June and winter are upon us and that means tax time is, too. If you currently own ASX shares, you’re likely looking for tax tips for investors. Doing our taxes each year can be time-consuming and expensive, depending on how you choose to have your tax affairs managed. But it’s an important time, nonetheless, and one that can have some serious impacts on your finances.

Successful investing normally comes with a bittersweet reality – we have to share our success with the taxman. It’s the price we all pay for a civilised society, as they say.

But that doesn’t mean there’s not a right way and a wrong way to doing our taxes. So below I’ve listed 3 tax tips for investors! Remember, this is all just general advice, make sure to check with a licensed tax professional regarding your own situation.

Tip 1) Claim all the deductions you are entitled to

Investing can take up a lot of time and money. Staying on top of things in the investing world can often cost you some serious coin. Newspaper subscriptions, investing memberships or accounting software fees are some of the many costs one can occur in managing an investment portfolio. Luckily, most costs that are directly applicable to running your investments are usually tax-deductible. So make sure you’re claiming all relevant costs that you might incur as part of your investing activities, including any capital losses.

Tip 2) Detail all of your income

There are many different ways you can make money in the course of an investment. There’s buying and selling shares and receiving dividends for one. But there are also managed fund distributions and foreign currency gains as well. Not to mention trading cryptocurrencies or options.

To the chagrin of some, no matter where or how you get the money in the course of your investing activities, it’s probably taxable. So don’t get yourself into a sticky situation with our friends at the Australian Taxation Office (ATO) and make sure you report any and all income you earn from your investments.

Tip 3) Earmark your return for ASX shares

Many of us will be entitled to a refund of some tax when we eventually receive our tax returns. Whilst it’s very easy to go out and splash this money on some new clothes, a fancy dinner or a holiday (domestic this year), it’s an even better idea to earmark the cash as ‘investing money’ before you even get it.  That way, you can give your ASX shares portfolio a major boost without blinking an eye.

Of course, if you would rather top up your savings for a rainy day then that’s completely fine. But think twice about how best to use a windfall this tax time. You might find that a new outfit or a night out on the town can wait.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As I’ve mentioned here before, I like to keep an eye on substantial shareholder notices.

This is because it gives you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:

IDP Education Ltd (ASX: IEL)

A notice of initial substantial holder reveals that Capital Group Companies has been buying the shares of this provider of international student placement services and English language testing services. Capital Group is an American financial services company. It is one of the world’s oldest and largest investment management companies with over US$2 trillion in assets under management.

According to the notice, Capital Group has been building a position in the company over the last six months and was buying shares as recently as Wednesday. It now owns 14,201,994 IDP Education shares, which equates to a 5.1% stake in the company. With its share price down 33% from its 52-week high, Capital Group appears to see a lot of value here.

TechnologyOne Ltd (ASX: TNE)

Another notice of initial substantial holder reveals that VicSuper has been taking advantage of a recent pullback in this enterprise software company’s shares to top up its position. VicSuper, which was established in 1994, is one of Australia’s leading profit-to-member super funds.

According to the notice, VicSuper now owns 17,953,423 TechnologyOne shares. This represents a 5.63% stake in the company. The TechnologyOne share price is down almost 12% since the release of its half year update last month. Investors were a touch underwhelmed by its 6% lift in sales and profits during the six months ending March 31. Nevertheless, judging by its purchases, this fund manager appears confident in TechnologyOne’s growth prospects and has seen this pullback as a buying opportunity. 

More reading

• ASX 200 Weekly Wrap: Surging bank shares push ASX toward 6,000
• These were the worst performing ASX 200 shares last week
• Insiders have been buying these ASX shares this week
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• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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