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Cadenc(Initiate)Initiate
18 Oct 2021

Hi, I am a sole trader who has done some share trading in financial year (20-21) and am about to do my tax return. After calculating the gains/losses, I have incurred a net loss from these investments over the year. Do I need to declare all my share trades where I achieved a capital gain even though i have a net loss with trading? What do I do on my tax return in regards to this trading? Thank you. *First year paying tax

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1,371 views
8 replies

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response19 Oct 2021

Hi @Cadenc


Are you a share trader, or a share investor? Either way, you'll need to lodge your tax return in order to use these losses in the future.


If you're a share trader, you work under business income rules and report the amounts as business income or loss. When your business meets non-commercial losses rules, you'll be able to use the loss against future business profits.


If you're an investor, you'll report the capital loss to use it in future years against capital gains.


You can read about share investing versus share trading on our website.

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Most helpful replyATO Certified Response

BlakeATO(Community Support)Community Support
ATO Certified Response19 Oct 2021

Hi @Cadenc


Are you a share trader, or a share investor? Either way, you'll need to lodge your tax return in order to use these losses in the future.


If you're a share trader, you work under business income rules and report the amounts as business income or loss. When your business meets non-commercial losses rules, you'll be able to use the loss against future business profits.


If you're an investor, you'll report the capital loss to use it in future years against capital gains.


You can read about share investing versus share trading on our website.

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Do i need to declare share trades on tax return if i have a net annual loss? | ATO Community