Private ruling: Share trading
Published: August 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Am I in business? | A1: Yes.

Relevant facts and circumstances: The nature of your activity is to produce a profit and you have invested sufficient capital and market research to achieve your intention. All activity is recorded in a business-like manner and you have taken formal study to better understand the mechanisations of your industry.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 6-5(1) | Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 995-1

Reasons for decision: Detailed Reasoning - Carrying on a business: Whether or not a person is carrying on a business is a question of fact and degree and is determined on a year to year basis. If a taxpayer's activities do not amount to the carrying on of a business in one income year that will not prevent them doing so in a later income year. Similarly when the extent of an activity falls below what is required for that activity to be commercially viable the activity may no longer constitute the carrying on of a business. Taxation Ruling TR 97/11 provides a guide to indicators that the courts have held to be relevant as to whether or not a person is carrying on a business. The overall impression gained is that you are in business. Your income from your business is assessable as ordinary income under section 6-5 of the ITAA 1997, while your deductions are allowable under section 8-1.