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mc8080(Newbie)Newbie
18 Dec 2024

I plan to begin trading U.S. stocks full-time, including day trading, swing trading, and options trading, starting January 1, 2025. As a sole trader, do I need to apply for an ABN (Australian Business Number) for tax purposes? Additionally, I will need a new computer, mobile phone, and car to support my trading activities. What is the best way to go about acquiring these items? What potential deductions will I be eligible to claim for this profession? Lastly, what key tax considerations should I be aware of as a full-time trader?

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1,293 views
1 replies

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Most helpful reply

EthanATO(Community Support)Community Support
19 Dec 2024

Hi @mc8080,


Yep! Share trading takes the form of a business here, which means you'll need an ABN. The specific type of ABN is up to you, but most likely a Sole Trader ABN will suit your needs here.


You'll also be able to claim deductions for those business-related expenses. However, you'll only be able to claim a deduction for the business portion of their use. The rules around each type of deduction can change, so I'd recommend reading our page on business deductions for a bit more info. At the bottom there's some links to specific types (motor vehicle, etc.) that should help out more.


As for other considerations, your trades will be considered regular trading stock for a business, and your losses will be deductible in the year they incur. As a sole trader you'll also report your business income in your personal tax return under the business section. I'd recommend reading through the linked pages on our Shares and Investments page. This should help you understand the tax side of things a bit more.


Let us know if you have any questions!

All replies

Most helpful reply

EthanATO(Community Support)Community Support
19 Dec 2024

Hi @mc8080,


Yep! Share trading takes the form of a business here, which means you'll need an ABN. The specific type of ABN is up to you, but most likely a Sole Trader ABN will suit your needs here.


You'll also be able to claim deductions for those business-related expenses. However, you'll only be able to claim a deduction for the business portion of their use. The rules around each type of deduction can change, so I'd recommend reading our page on business deductions for a bit more info. At the bottom there's some links to specific types (motor vehicle, etc.) that should help out more.


As for other considerations, your trades will be considered regular trading stock for a business, and your losses will be deductible in the year they incur. As a sole trader you'll also report your business income in your personal tax return under the business section. I'd recommend reading through the linked pages on our Shares and Investments page. This should help you understand the tax side of things a bit more.


Let us know if you have any questions!

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