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JTrue(Newbie)Newbie
13 Dec 2022

Hi All,


I'm hoping someone can point me in the right direction to find information regarding being a sole trader and investing in shares/property.


I am starting my own business as a side hussle from my FT job. I was planning on using any profits to invest in dividend earning (long term holds) shares and property.


I'm basically looking for information for:

  • Sole trader ABN purchasing principal residence with mortgage - are costs of mortgage deducted from taxable income if the residence is the base for the business? What about investment properties? Can they be held on the ABN and costs (rates, utilities etc) be deducted from taxable income?
  • Investing in shares - is the purchase costs deducted from taxable income and only dividend taxed, or does purchase price still get taxed as income for the ABN?

I'm completely lost and don't exactly have the most financially honest parents so would like to do things properly from the get go, rather than taking advice people questionable resources.


Any help would be great - thank you!

3,359 views
1 replies
3,359 views
1 replies

Most helpful response

Most helpful reply

CaroATO(Community Support)Community Support
15 Dec 2022

Hi @JTrue,


It's possible to claim expenses when you operate your business from your home. They're called home-based business expenses. There are 3 categories.


  1. Occupancy expenses such as mortgage interest and council rates,
  2. Travel expenses between home and other locations for business purposes, and
  3. Running expenses for example phone, furniture, and cleaning.

There're also deductions you might be able to claim for investment properties too!


Keep in mind before you can claim any expenses as long as you have -


  1. Spent the money for your business,
  2. If the expense is for a mix of business and private use, only claim the business portion, and
  3. You must have a record to prove the expense.

You can be either a share trader or investor. If you're in the business of buying and selling shares you'll treat your shares like trading stock. Your income and expenses will be taxed similarly to employment income.


As a share investor your profit and losses will be treated under capital gains tax rules.


If it turns out you're in the business of shares/property, you'll combine the income with your sole trader income for tax purposes.


We've awesome information on our website to help you make decisions and get it right. Check out where it talks about claiming tax deduction for expenses for a home-based business and share investing versus share trading.


Enjoy your new adventure!

All replies

Most helpful reply

CaroATO(Community Support)Community Support
15 Dec 2022

Hi @JTrue,


It's possible to claim expenses when you operate your business from your home. They're called home-based business expenses. There are 3 categories.


  1. Occupancy expenses such as mortgage interest and council rates,
  2. Travel expenses between home and other locations for business purposes, and
  3. Running expenses for example phone, furniture, and cleaning.

There're also deductions you might be able to claim for investment properties too!


Keep in mind before you can claim any expenses as long as you have -


  1. Spent the money for your business,
  2. If the expense is for a mix of business and private use, only claim the business portion, and
  3. You must have a record to prove the expense.

You can be either a share trader or investor. If you're in the business of buying and selling shares you'll treat your shares like trading stock. Your income and expenses will be taxed similarly to employment income.


As a share investor your profit and losses will be treated under capital gains tax rules.


If it turns out you're in the business of shares/property, you'll combine the income with your sole trader income for tax purposes.


We've awesome information on our website to help you make decisions and get it right. Check out where it talks about claiming tax deduction for expenses for a home-based business and share investing versus share trading.


Enjoy your new adventure!

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