If you meet the Australian Tax Office definition of a share trader, you can benefit from tax benefits. The ATO defines a share trader as, "a person who carries out business activities for the purpose of earning income from buying and selling shares. The ATO assess individuals on a case-by-case basis. The ATO can also look at precedent from previous decisions when assessing your case. This page gives an insight into how the ATO classifies traders and investors and the tax implications of either classification.

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ATO ID / - Share option trading

Rates last updated June 21st, Details Features Commonwealth Financial Planning Free initial consultation offer with a financial planner Commonwealth Financial Planners could help you: Grow your super Insure your family and assets Plan your investments Prepare for retirement Enquire More info How does the ATO classify share traders and share investors?

The ATO gives some guidelines but ultimately makes decisions on a case-by-case basis. The ATO assess the nature of your trading activities when deciding to classify you as a share trader or investor. The ATO also looks at your business or trading plan. Share investors need to pay attention to Capital Gains Tax CGT and the timing of the sale of shares. Share investors must pay CGT on any capital gains from investments.

Also note the timing of the sale of shares and the effects of making a capital gain or loss before or after June Franking credits can be used by shareholders for a tax break on share dividend payments.

ATO ID / (Withdrawn) - Share and Securities Trading.

Tax implications are different for traders and investors. The ATO will classify you as a trader if you can answer yes to the following:. Share trading games allow you to learn the basics of buying and selling shares without spending any of your own money. Learn the ins and outs of share trading so that you can start investing in the sharemarket to build a secure financial future.

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Share traders Money from the sale of shares and share dividends are included in assessable income.

The costs of buying and selling shares can be claimed as a tax deduction. Share traders can claim the costs of items such as computers, as they are necessary to making trades and keeping records. Capital losses are subtracted from capital gains. Any net profit is subject to CGT. Can claim deductions on the prepayment of expenses such as internet fees, seminars or subscriptions for up to 12 months in advance.

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Share trading for dummies - learn how to invest in the share market Learn the ins and outs of share trading so that you can start investing in the sharemarket to build a secure financial future.

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