Jump to content

Buying Carnival RCL NCLH stock to get Shareholder Benfit OBC for Australasian crusers..


Recommended Posts

6 minutes ago, MicCanberra said:

Hmmm with the AUD down to $0.62 USD some of those savings in the dropping rate are eaten away.

 

I am thinking  that when the Cure is announced and things in theory spring back to Normal.. all the hot money put into the SAFE USA Dollar will flow out and  will raise  the Australian dollar.

 

Making USA investments worth slightly less.

 

In normal circumstances I would say it is swings and roundabouts. You win on the swing but loose on the roundabouts.

 

But now is not normal circumstances.

Edited by amatuercruiser
Link to comment
Share on other sites

I am not familiar with the share market but sounds like I should invest in some.

My brother who does tinker in shares and cruises with princess frequently tells me buying would complicate things tax wise.

Agree or disagree?

I have spare cash so happy to take the risk but dont want tax issues.

Edited by Tara Jane
Link to comment
Share on other sites

It does complicate things tax wise.

 

The asset (shares) will be in a foreign currency so has to be calculated separately from other shares when you sell, and profit and loss managed separately.

 

Similarly the dividends you get are also in foreign currency so need to be converted each time.

Link to comment
Share on other sites

12 minutes ago, MicCanberra said:

We let our accountant take care of all that but it is wise to know in advance how something may affect your situation overall.

 

It should also be noted that there is discussion about whether the shareholders OBC should be treated as an income and therefore taxable . As said above that’s what you pay your accountant to look after . .......his fee may negate any benefit .😳

Edited by Kiwi Kruzer
Link to comment
Share on other sites

8 minutes ago, Kiwi Kruzer said:

 

It should also be noted that there is discussion about whether the shareholders OBC should be treated as an income and therefore taxable . As said above that’s what you pay your accountant to look after . .......his fee may negate any benefit .😳

Our accountant bills us for the year, not for each individual enquiry. In any case it would be simply treating it as a dividend if needed.

Link to comment
Share on other sites

33 minutes ago, MicCanberra said:

Our accountant bills us for the year, not for each individual enquiry. In any case it would be simply treating it as a dividend if needed.

Could the OBC be considered a gift, dividend or gratuity from Carnival. If considered, by the ATO, as a gratuity it has to be declared as income and therefore could be taxable. I don't see it as a dividend as it is not given to all shareholders regardless of whether or not they cruise and, I suspect, dividends are required to be declared in company financial reports. But, I'm not an accountant (although I did study accounting at uni for a while many years ago) or an ATO assessor but it is an interesting debate.

Link to comment
Share on other sites

Because the shareholders OBC is not cash, is it possible it would not be regarded as income?

 

Each person needs to look at their own situation. Many cruisers are retired and eligible for the taxation "Senior's Offset" (I hope that is the correct term). The normal dividend of US$200 pa wouldn't be enough to being them into the income tax paying bracket.  

 

We bought shares to give us the OBC, not for the dividends. I expect the dividends will be very sparse for the next year - as will the OBC because our next couple of booked cruises are not going ahead.

Link to comment
Share on other sites

3 hours ago, lyndarra said:

Could the OBC be considered a gift, dividend or gratuity from Carnival. If considered, by the ATO, as a gratuity it has to be declared as income and therefore could be taxable. I don't see it as a dividend as it is not given to all shareholders regardless of whether or not they cruise and, I suspect, dividends are required to be declared in company financial reports. But, I'm not an accountant (although I did study accounting at uni for a while many years ago) or an ATO assessor but it is an interesting debate.

It is neither a dividend or a gratuity. It may be considered a gift or a fringe benefit though, so depending on how the ATO consider it, the tax implications are unknown. I would feel that as it is non-refundable money that can only be used on board a ship during the cruise itself. They would not have a rule to put it as a gift that actually benefits both the donor and the recipient.

Link to comment
Share on other sites

2 hours ago, Aus Traveller said:

Because the shareholders OBC is not cash, is it possible it would not be regarded as income?

 

Each person needs to look at their own situation. Many cruisers are retired and eligible for the taxation "Senior's Offset" (I hope that is the correct term). The normal dividend of US$200 pa wouldn't be enough to being them into the income tax paying bracket.  

Agreed, and it can only be sent in a particular way, for a limited time and any use of it benefits both recipient and the donor.

 

Link to comment
Share on other sites

13 hours ago, Tara Jane said:

I am not familiar with the share market but sounds like I should invest in some.

My brother who does tinker in shares and cruises with princess frequently tells me buying would complicate things tax wise.

Agree or disagree?

I have spare cash so happy to take the risk but dont want tax issues.

 

Only invest the money in Cruise line shares IF you can afford to Loose it ALL.

 

There is NO GUARANTEE the Share Holder On Board Credit offer will continue in the future. The Share holder OBC  is valid for one year and it's continuity  is voted on at each annual shareholder meeting.

 

There is No Guarantee Carnival or Royal Caribbean will continue to pay a dividend.

 

Australia has a Tax agreement with the USA. So the USA withholding a percentage (poss 15%) of the Cruise line quarterly dividend can "Simply" be claimed back on your Australian tax return. (I think up to Aus $1000). You do need to fill out a USA Government W8????? form once every three years in order to get the benefit of the Tax agreement.

 

There is Currently no cruises so no RUSH to invest in a declining industry. My suggestion is hold off until you are sure Carnival and RCL will be selling cruises and you will be able to get Share Holder On Board Credit.

Link to comment
Share on other sites

Air NZ has just announced a trading halt on its shares to remain in force until they can assess the impact of these dramatic events . The drop in share price effects there financial position .

Wonder if Carnival will do something similar ?

Link to comment
Share on other sites

27 minutes ago, Kiwi Kruzer said:

Air NZ has just announced a trading halt on its shares to remain in force until they can assess the impact of these dramatic events . The drop in share price effects there financial position .

Wonder if Carnival will do something similar ?

They will if they are smart,

Link to comment
Share on other sites

I believe the trading halt is only while they replan which services are cut e.g. a day or so, not until the whole thing clears up.

 

Carnival and others have already announced the current planned cancellation so don't need to go into a halt; the market is informed of their current plans.

Link to comment
Share on other sites

Carnival CCL is now trading at about $8.87 with a Market Capitalization of $6.604 Billion.

 

Lets think  about that.

 

Virgin Cruises Just paid approx 800 Million (estimate) for one new ship.

 

For the cost of eight Virgin ships you could own / buy every share In  Carnival and have over 50 ships.

 

Yes 50 ships. That's a ratio of 7 to one for the same money.

 

All you have to do is ride out the Corona Virus until a cure or Vaccine is found.

 

I think a few venture capitalist have to be sniffing around a $6.4 billion investment with a $25 Billion upside.

 

RCL and NCLH are similar.

Edited by amatuercruiser
Link to comment
Share on other sites

Just a further thought , Disney Cruise line is probably the most vulnerable at the moment  as the Corporation closes all its theme parks hotels resorts and cinemas . They would all rely on a steady cash flow which has dried up overnight. 
 

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

  • Forum Jump
    • Categories
      • Thank You for 25 Years - Click for Fun Stuff!
      • Forum Assistance
      • ANNOUNCEMENT: Virgin Voyages. It's Go Time
      • New Cruisers
      • Cruise Lines “A – O”
      • Cruise Lines “P – Z”
      • River Cruising
      • ROLL CALLS
      • Digital Photography & Cruise Technology
      • Special Interest Cruising
      • Cruise Discussion Topics
      • UK Cruising
      • Australia & New Zealand Cruisers
      • Canadian Cruisers
      • North American Homeports
      • Ports of Call
      • Cruise Conversations
×
×
  • Create New...