Selling the same stock bought at different times

[So_Cynical]

not necessarily a threshold of income, but an assessment of the purpose and professional attitude:

http://www.ato.gov.au/businesses/content.asp?doc=/content/21749.htm&page=1#H1

I think the ATO mite need to look at what they call a share trader..im amazed that i pretty much meet all the criteria.

http://www.ato.gov.au/businesses/content.asp?doc=/content/21749.htm&page=7&H7

Carrying on a business of share trading
Examples

Example 1 – Share trader

In the year ended 30 June 2001, Molly conducted 60 share transactions: 35 buying and 25 selling. The average buying transaction involved 500 shares and the average cost was $1,000. The average selling transaction involved 750 shares and the average selling price was $1,800. All the transactions were conducted through stockbroking facilities on the internet. The average time that Molly held shares before selling them was twelve weeks. Molly's activities resulted in a loss of $5,000 after expenses.

Molly's activities show all the factors that would be expected from a person carrying on a business. Her share trading operation demonstrates a profit making intention even though a loss has resulted. Molly’s activities are regular and repetitive, and they are organised in a business-like manner. The volume of shares turned over is high and Molly has injected a large amount of capital into the operation.

I did 28 buys/sells last financial year, average investment was prob 4K and mostly held for less than 12 weeks before taking partial profit. i mite need to get a ruling...i never ever considered my self a trader.

 

[yonnie]

if you`re flipping shares regularly within a short time with the motive of turning a profit on the price difference, you`re definitely a trader.

however if your primary goal is to invest for the long term to receive dividends without your main focus being to profit from the price difference of the shares then you`re an investor.

you can be both, but keep everything separate.

 

[So_Cynical]

if you`re flipping shares regularly within a short time with the motive of turning a profit on the price difference, you`re definitely a trader.

however if your primary goal is to invest for the long term to receive dividends without your main focus being to profit from the price difference of the shares then you`re an investor.

you can be both, but keep everything separate.

Can you be both with the same shares im flipping shares for profit to establish free carry and then recycle my capital..with the end goal of increasing my dividend stream.

Interesting cos my profit is generally 5 or 6 X what my dividend return is...still my dividend stream is growing substantially while my profit is reasonably static, year on year.

:dunno:

 

[yonnie]

you can be a trader and investor in the same shares as long as you keep them apart.

it is the motive of the trader/investor at the time of the purchase that is important to the ATO.

to flip the shares for a quick profit - trader
to keep the shares for the dividend - investor

you could even keep a diary and record the purchases and your intention at the time to show ATO if needed.