Selling the same stock bought at different times

pixel said:

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

Click to expand...

ATO Link said:

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.

Click to expand...

yonnie said:

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.

Click to expand...