HC family this is the simple understanding .if your a individual...

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aussieasxboss

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13/04/21

20:57

Post #: 52442360
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Originally posted by CJ013: ↑

Also, I think as a Trader, you cannot claim CGT exemption. So if you do happen to hold some shares for over 12 months and make a tidy profit when you sell....you can't claim that CGT. Which.....to my basic understanding, would normally mean that half of the profit above your original capital, is exempt from tax, and you only declare the income of the remaining amount and pay tax on that. So you'd miss out on that scenario. And I think there might be some implications about franked credits with dividends as well. If you are definitely only intraday/short-term trading...then not an issue. But if you happen to hold some stock for more than a year.... then the CGT issue might affect you. That said, I don't think it is up to you as to whether you are classified as a Trader or an Investor, I think the ATO does this on a case-by-case basis and looks at your volume and frequency of trading, other income relative to your trading income, your training and qualifications etc. I think there is actually something like this on the ATO website.

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HC family

this is the simple understanding .

if your a individual - cgt applies for assets held longer then 12 months regardless of your classified as an investor or trader

anything less then 12 months is considered additional income and tax at your marginal rate it's simple

if your an individual as only individual are allowed 50% cgt discount you need to hold it eligible for more then 12 months

then if you make $10k profit

you will be only taxed on $5k
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