Why does EOFY Selling occur?
Thanks for your continuing good work which is always appreciated. You have recently been mentioning EOFY tax loss selling quite often, but I don't see the benefit of this activity and why it would occur. Losses at 30 June will be recognised when placed in your Profit and Loss Account at "the lower of original cost or market value", which is permitted by the ATO, while any stocks sold in the lead up to 30 June will be placed under "Sales" but will be thus be absent from "Closing Stock" which thus balances out the figures at the Gross Profit line of your year end Profit and Loss Account. Thus there seems no benefit at all to pre 30 June tax loss selling, so why would it be used as a tactic?
