if you're carrying on a business of share trading:- shares held...

if you're carrying on a business of share trading:

- shares held for dividend stream will still be on capital account and subject to CGT

- shares held for sale will be trading stock. the acquisition of shares is deductible and proceeds on sale is assessable. you will need to value your shares on hand at year end (cost, market value or replacement value) and if that value is more than the opening (per prior year return) then you include the excess in assessable income (accordingly, if the value is less, you get a deduction).

- when 'cost' is chosen, you effectively don't get a deduction for the acquisition price until the year of sale

- when 'market value' is chosen, you effectively can deduct unrealised losses (or be taxed on unrealised gains)

the choice is made independently for each item of trading stock, and you are not required to be consistent year-on-year. eg, you can pick market value for dogs and cost for stars and switch in later years

i can't think of any reason why an individual would choose market value for good performing shares, companies may though if they are managing tax losses

(not advice)