@roaminoz Hi, I'm trying to see if I can be classified as a...

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    @roaminoz

    Hi, I'm trying to see if I can be classified as a trader, below is what my accountant sent me, he said I have to pass all 4 tests. Also, how is tax calculated for people classified as a trader, I don't want to ask him any more questions atm so if someone here can help that would be great. Thanks in advance

    Four tests

    If your other income is within the limits outlined in Table: Non-commercial losses, check if you pass any of the four tests (assessable income test, profits test, real property test or other assets test). If you pass any of the tests, you can offset your business losses against your other income:
    *assessable income test - the business has assessable income of at least $20,000
    *profits test - the business had a profit for tax purposes in three out of the past five years (including the current year)
    *real property test - the value of real property or of an interest in real property that you used in the business on a continuing basis was at least $500,000
    *other assets test - the value of assets (excluding real property, cars, motorcycles and similar vehicles) you used on a continuing basis in carrying on the business was at least $100,000.
 
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