Share Trading Deductions

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 · Accepted Answer

BlakeATO · Answer

When we say 'including the cost of shares' we mean that you can claim a deduction for the cost of buying your trading stock (that is, the shares). This means if the shares are valued at $5 each, you can claim that $5 as a deduction. Broadly, by 'costs incurred in buying or selling shares', we mean what would be the first two elements of the cost base if you were an investor. You'll need to do a stock take as close as possible to the end of the financial year. When you do, you have three options for valuing your trading stock: cost price method, market selling value method, or replacement value method. Remember tn increase in your trading stocks value over the year is counted as assessable income. This means for your first year, your change in trading stock value is zero to whatever your valuation method makes it. You can read about this on valuing trading stock on our website.

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