Ann: Section 708A Notice and Appendix 3B, page-36

Whether you are classified as an investor or as carrying on a business of share trading depends upon a number of factors. For your losses to be on revenue account you need to be carrying on a business of share trading, of which the indicators are the quantum of capital committed to the operation, the frequency with which you trade, whether you do research or subscribe to research services, and the types of shares you trade in (i.e. if only spec shares at frequent turnover, then more likely to be on revenue account than buying dividend producing shares).

The 12 month time frame is merely the amount of time that you must hold a capital asset to be entitled to claim the 50% CGT discount. You may still hold an asset on capital account and realise a capital loss if you have held it less than 12 months. However, if you sell in under 12 months then you cannot get the 50% discount on your capital gain.

There is no limit to the time between when you sell to realise a loss and when you can buy back in to the same share. There may be a good reason to do so as you may have other capital gains to offset, but still want to hold the share that is currently in a loss position.

There is also no 7 year limit on when you can utilise losses. They carry forward indefinitely provided you continue to disclose the losses on your annual tax return.