In this episode of Talking Trading, feel the pain of not treating your trading like a business and why the tax department refused to grant a tax rebate to a share trader on the grounds her business was not being run professionally. Hear how you can avoid ever being in such a situation. Also tune in to the personal journey of accountant Jason Cunningham and his rags to celebrity story.
The importance of running your trading business professionally comes to harsh taxation reality.
The Australian Tax Office declared a taxpayer was not a share trader despite making substantial share trades.
- The taxpayer worked as a child-care educator and earned $40,000 in wages
- She used her savings of $40,000 to start trading in shares
- During 2011 she made 71 purchases to the value of $379,630 and she was seeking a tax deduction on her losses of $20,000
The tax office denied the loss declaring she was not a share trader.
Jason’s spells out the reasons why this happened and the essential criteria the tax office looks for in running a trading business SO YOU ARE NEVER IN THIS SITUATION.
Also hear the personal rags to celebrity story of Jason Cunningham. How his family lost everything during his childhood, and how this drove him to build his accounting firm The Practice and why his passion is to present financial matters in language everyone can understand.