Private ruling: Am I in business - contracts for difference trading
Date of advice: 2 November 2021
Published: February 2022
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Does your activity amount to the carrying on of a business? | A1: No. Your Contracts For Difference (CFD) trading does not meet the factors contained in Taxation Ruling TR 97/11. Further information about carrying on a business can be found by searching 'QC 31733' on ato.gov.au | Q2: Are the gains from your CFD trading activity assessable income, and are the losses from your CFD trading activity deductible? | A2: Yes The principles set out in Taxation Ruling TR 2005/15 Income tax: tax consequences of financial contracts for differences (TR 2005/15) have been applied, which provides the Commissioner's view on the income tax consequences of entering into financial CFD's. In your case, as your CFD trading activities were not being carried on as a business, but rather as a profit making undertaking, the gains from the activity are assessable income, and the losses from the activity are deductible?

Relevant facts and circumstances: You have significant experience in trading in financial products including shares, exchange traded funds, listed options, and contracts for difference (CFD's), however you do not hold any formal qualifications.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 15-15. | Income Tax Assessment Act 1997 section 25-40