Tax Return, page-9

  1. 7,432 Posts.
    For starters do all the figures on each of your trades yourself to tax accountant standard. date bought/sold ,how many , price bought/sold, outcome for each trade. This will save accountancy fees.
    Then post on some traders threads day/short term/the XSO brains trust etc your question.
    It is quite complicated getting legitimately classified under Tax Law as a Share Trader and not investor especially to offset losses against day job income. Tax Law has an element covering Professional Gamblers in it as well as business vs a hobby enterprise.
    A "problem" arises with the system currently of "Automatic" assessments BUT with a 2 year + period where the Office can review and amend ie 2 years later Office denies status and wants the refund returned. Your Loss to be only offset against Capital Gains.
    Also if you're trader classified as an individual it can be that holding for over a year does NOT give "discount" on gains.

    Anyhow think the "system" is to present your case to the Tax Office for a Ruling in Writing on your activity being Trading not Investing BEFORE lodging return.. It's all around frequency of activity etc and I don't think 100 trades in a year qualifies BUT try those threads with your question to get more current info on being Trader classified.
    All I can say is it's Tricky and you don't get 'success' simply by getting a first year assessment/refund.
 
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