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Tax on US Futures Trading

Newbie

Views 1874

Replies 1

I am about to start trading US Futures contracts in Perth Australia.

I will be very short term trading approx 4-6 buy and sell round turns per trading session. 2-3 trading sessions per week. I have a business plan and daily analysis and review of all sessions plus a brokerage statement with all trades taken. I believe this will be classed as a share trader due to the business like nature and aim of making a profit and high volume turnover.

Do I need an ABN to trade under? Will I be classed as a share trader? Is there anything I need to do before starting to trade.

 

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @pickles1101,

 

Thanks for your question!

 

If you've already determined that you'll be classified as a share trader, there's a couple of guides on shares and shareholding/share trading that you should review in order to make sure that everything is above board.

 

You may also want to look at some of our previous community questions relating to share trading as a business and any tax implications. You can find some examples here, here, here and here.

 

If you are intending to trade as a business, and hope to be treated as a business, then you probably should look at registering for an ABN. This is part of the criteria that we consider when we determine if you are a shareholder or share trading as a business, so you should have one if you consider yourself to be trading as a business. You may also need to register for GST if your turnover (or projected turnover) is $75,000 or more.

 

If you set up an ABN and GST registration, but later stop using it, you can cancel it quite easily and pick it up again at a later time if need be.

 

I hope this is helpful, but please let me know if there's anything else I can assist you with.

 

Thanks,

 

Rachael B.

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @pickles1101,

 

Thanks for your question!

 

If you've already determined that you'll be classified as a share trader, there's a couple of guides on shares and shareholding/share trading that you should review in order to make sure that everything is above board.

 

You may also want to look at some of our previous community questions relating to share trading as a business and any tax implications. You can find some examples here, here, here and here.

 

If you are intending to trade as a business, and hope to be treated as a business, then you probably should look at registering for an ABN. This is part of the criteria that we consider when we determine if you are a shareholder or share trading as a business, so you should have one if you consider yourself to be trading as a business. You may also need to register for GST if your turnover (or projected turnover) is $75,000 or more.

 

If you set up an ABN and GST registration, but later stop using it, you can cancel it quite easily and pick it up again at a later time if need be.

 

I hope this is helpful, but please let me know if there's anything else I can assist you with.

 

Thanks,

 

Rachael B.