Hi
can anyone give me a reference or guidelines on how to identify if I was carrying on a business of investing?
My business was around trading a lot of shares, crypto, CFD, and was classified as a business (share trader). Under the tax return business P8 section, should I classify my net income under;
a. Net income or loss from carrying on a business of investing; or
b. Other income or loss relating to carrying on a business
Hi @Jessa,
If you're a crypto trader and reporting this at the business section on your return, you'd need to include it under Net income. You can check out Crypto assets used in business from here. It also provides information for Trading stock vs Investment.
When crypto is reported under other income this is usually for airdrops and staking rewards for investors. You can view this via - Taking the cryptic out of crypto this tax-time - Income from crypto assets.
Check out our article about Crypto and your taxes.
Hi @Jessa,
If you're a crypto trader and reporting this at the business section on your return, you'd need to include it under Net income. You can check out Crypto assets used in business from here. It also provides information for Trading stock vs Investment.
When crypto is reported under other income this is usually for airdrops and staking rewards for investors. You can view this via - Taking the cryptic out of crypto this tax-time - Income from crypto assets.
Check out our article about Crypto and your taxes.
Hey Jessa,
You first need to determine if you are in the business of trading cryptocurrency.
There is some good guidance provided from the ATO on Share investing vs share trading that you can follow.
There's also this article from Syla on Crypto trader vs investor that is more specific to crypto.
There's no clear cut-off point between an 'investor' vs 'trader', it's really based on your circumstances. The most important factors would be the volume, repetition, and regularity of your trading, how sophisticated the trading operation is, and the amount of time you devote to the activity.
Your tax accountant should be able to help you consider your situation and make a decision. If needed, they can also provided written advice for you.
(edited by moderator 16/03/23)
15 Apr 2026 · 8 min read time
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