# Tax deduction of CFD losses



## petehe (11 September 2012)

I have been trading with CFD for 2 months and lost 4k last financial year.
I have full time job and so I am not a trader.
Could anyone tell me if I can claim the CFD loss as deduction to offset my taxable income?
If I can which category should I claim it under

Much appreciated.


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## McLovin (11 September 2012)

petehe said:


> I have been trading with CFD for 2 months and lost 4k last financial year.
> I have full time job and so I am not a trader.
> Could anyone tell me if I can claim the CFD loss as deduction to offset my taxable income?
> If I can which category should I claim it under
> ...




Nup.

You made a capital loss so can only use that loss to offset capital gains. Unless you are a professional trader your capital gains and losses are not considered ordinary income that can offset other ordinary income like salary.


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## petehe (11 September 2012)

McLovin said:


> Nup.
> 
> You made a capital loss so can only use that loss to offset capital gains. Unless you are a professional trader your capital gains and losses are not considered ordinary income that can offset other ordinary income like salary.




Thanks McLovin


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## chrislp (11 September 2012)

You may want to look into this further with the ATO or your accountant as you may be able to do what you originally asked.

You can be classed as a trader by the ATO depending on your activities. You don't have to be doing it full time or for it to be your only income.

A quick search & I came across this on the ASX website.


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