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VikKiv(Newbie)Newbie
6 May 2022

I am trying to understand the nuances behind the classification of a trader and as an investor. The resource https://www.ato.gov.au/individuals/capital-gains-tax/shares-and-similar-investments/share-investing-versus-share-trading/ seems to talk about a person. However, if I, as an individual, have separate brokerage accounts, where I use one account for long term holdings, and another independent account for trading, am I able to classify them as investor and trading accounts respectively, simultaneously?


In a response to a previous question here https://community.ato.gov.au/s/question/a0J9s0000001CkT/p00025312, the ATO staff refers to an "entity". Are separate brokerage accounts sufficient to be classed as entities?

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864 views
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Bruce4Tax(Taxicorn)Taxicorn
6 May 2022

An entity refers to a taxpayer - usually other than an individual.


So, you are the entity - with 2 broker accounts.


You are allowed to nominate specific holdings that not for trading, so convenient to use separate accounts.


Trading always depends on the facts of what you are doing.


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
6 May 2022

An entity refers to a taxpayer - usually other than an individual.


So, you are the entity - with 2 broker accounts.


You are allowed to nominate specific holdings that not for trading, so convenient to use separate accounts.


Trading always depends on the facts of what you are doing.


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Are my separate brokerage accounts sufficient to determine my trader vs investor classification? | ATO Community