Investor versus Trader

[RamonR]

Have just recently done my tax and essentially my accountant has put me down as a trader ie. capital losses were written off against income instead of carried over.

This has worked well for me this year but is there any consequences to this for me in the future.

 

[pj2105]

Don't think so no.

Of course any profit you make in the future too will also add to your income in a future tax return.

 

[RamonR]

Would have been up for capital gains tax anyway so that is not a issue.

Do I still get to claim the 50% saving on capital gains if I hold for more then one year.

 

[jono1887]

Would have been up for capital gains tax anyway so that is not a issue.

Do I still get to claim the 50% saving on capital gains if I hold for more then one year.

not if your a trader as your not selling capital... as a trader, you're just selling inventory/stock like a business.

 

[ThingyMajiggy]

Interesting topic.

Can one be put down officially as a "Trader", then get computer, books, software etc as a tax deduction? Or is it a bit of a grey area with tax?

Would this be a good idea, or just keep working a normal job and stay under that banner?

 

[sammy84]

Interesting topic.

Can one be put down officially as a "Trader", then get computer, books, software etc as a tax deduction? Or is it a bit of a grey area with tax?

Would this be a good idea, or just keep working a normal job and stay under that banner?

The difference between share trader and investor takes into account the nature, regularity, volume, repetition, capital employed and the extent of organisation surrounds your trading. Even if you are working a normal job, you will still be classified as a share trader if the ATO thinks fit. From what I know about your trading style and effort, your probably soon going to fall under this heading.

Its not all bad news however if your are as there are many deductions available. I claim my home office, brokerage costs, data subscriptions etc. Books is a grey area however as it may not satisfy the nexus that it helped you produce that particular income.

 

[ThingyMajiggy]

Thanks sammy