Private ruling: Am I in business of share trading
Date of advice: 21 July 2021
Published: September 2021
Ruling period: 1 July XXXX to 30 June XXXX | 1 July XXXX to 30 June XXXX
Date scheme commenced: XXXX

Ruling: A1: Yes Weighing up the relevant facts and circumstances it is considered that you were engaged in a business of share trading from 1 October 20XX to 9 March 20XX as your activity has significant commercial purpose and character that would be expected of a share trading business. You can change from conducting an activity as a business to that of being an investor and vice-versa over time as your level of activity changes. You should evaluate your level of activity on a regular basis to see whether you are investing or carrying on a business.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You commenced your share trading activity with a broker. You hold a joint account with a second broker. You conduct your share trading activity as a sole trader. You initially invested $XXX as capital that was set up for margin trading. For the XXXX financial you made XXX trades making a profit. For the XXXX financial year made XXX trades making a loss. Your taxable income for XXXX financial year involved income from multiple sources. You commenced full time employment on where you earn a salary and wage during the XXXX financial year. You keep records of all your trades through your trading accounts with your brokers and also keeps detailed spreadsheets of trades. You spent a minimum of X hours a day on your trading activity depending on the volume of trades conducted during that day. You followed a trading strategy developed by yourself from your previous experience in share trading activities.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 35-10 | Income Tax assessment Act 1997 section 35-30 | Income Tax assessment Act 1997 section 70-10


Question One: Are you considered to be in business of trading shares?