Private ruling: Contracts for difference trading
Date of advice: 5 July 2018
Published: September 2018
Ruling period: 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Am I able to claim my net losses against my other income? | A1: Yes. Having considered your circumstances, the relevant legislation and taxation rulings surrounding contracts for difference trading, your net loss is able to be deducted against your total assessable income for the income year 2017-2018 as per section 25-40 of the Income Tax Assessment Act 1997 (ITAA 1997).

Relevant facts and circumstances: You only traded in contracts for difference (CFD) in one month of 2018. During that month you made a high volume of trades which lead to a loss. You performed the trades from your home office. You entered the trades with the intention of making a profit. You intend to make trades in the future, after completing some training and getting some better equipment. You traded under your own name and did not have a registered ABN for the activity. You are currently employed and have no intention of leaving your job.

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 15-15 | Income Tax Assessment Act 1997 Section 25-40