Share trading while living overseas for a year

Say you will live overseas for a year renting a studio apartment & your only source or main source of income (assuming making a profit) will be trading Australian shares, what can be claimed as a deduction when ATO tax time comes?

Would I be correct in assuming:

1. Laptop
2. Internet
3. Phone
4. Electricity
5. Portion of rent for "home office"
6. Online brokerage fees
 
Anything used to generate income is an allowed deduction. If you are liable for tax then I can't see that your location matters. All the items you cite are allowed but you need to evidence the fact that they are for generating income. It could be quite hard to apportion some items, like electricity, laptop and Internet. Brokerage fees - the $15 or so for each trade - are a CGT item and are not immediately deductable for investing. CGT applies when you sell. I do not know what the tax rules are for traders and brokerage; I think the ATo has a booklet on this. I'm an investor, holding shares for 10-20 years.
 
Say you will live overseas for a year renting a studio apartment & your only source or main source of income (assuming making a profit) will be trading Australian shares, what can be claimed as a deduction when ATO tax time comes?

Would I be correct in assuming:

1. Laptop
2. Internet
3. Phone
4. Electricity
5. Portion of rent for "home office"
6. Online brokerage fees

While you live overseas for such a short period Australia will tax all income from all sources worldwide (incl o'seas). This includes share trading. It may be that your deductions would be very small and limited only to costs incurred in EARNING assessable income. You should retain evidence of how you incurred sch costs and seek personal tax advice. I would expect little is deductible. You cant claim a share of rent unless home is a place of business. Share Trading is unlikely to constitute a business but personal tax advice may be needed.
 
Say you will live overseas for a year renting a studio apartment & your only source or main source of income (assuming making a profit) will be trading Australian shares, what can be claimed as a deduction when ATO tax time comes?

Would I be correct in assuming:

1. Laptop
2. Internet
3. Phone
4. Electricity
5. Portion of rent for "home office"
6. Online brokerage fees

Only from my experience but,you would have to be trading continuously ,brokerage fees that's normal entry-exit costs
so that would be one out of the 6,maybe if you only deal with a Australian based face to face broker,plus there are other costs..
 
Only from my experience but,you would have to be trading continuously ,brokerage fees that's normal entry-exit costs
so that would be one out of the 6,maybe if you only deal with a Australian based face to face broker,plus there are other costs..

Why only face to face? Most people trade online these days & have brokerage fees to pay too. Why would it be non-deductible??

I would've thought a certain share of electricity & internet could be deducted too. Also a percentage of the laptop purchase if you buy a new laptop, or the whole thing if the laptop is 100% used for trading.
 
Why only face to face? Most people trade online these days & have brokerage fees to pay too. Why would it be non-deductible??

I would've thought a certain share of electricity & internet could be deducted too. Also a percentage of the laptop purchase if you buy a new laptop, or the whole thing if the laptop is 100% used for trading.

Electricity at 35cents a hour does not make a huge deduction
Depreciation of laptop sure.
Internet - Some %
Trading platform fees etc perhaps (Live feed for data etc)
Bank fees for a dedicated account maybe

Just watch volumes that may define you as a professional trader. Then your acquisitions are on trading account so all profits are based on realised and unrealised gains. https://www.ato.gov.au/General/Capi...-investments/?page=4#Trading_or_business_plan

This can provide a benefit if a loss occurs BUT the non-commercial loss tests may not be favourable. Problem is you cant choose how this tax regime works. Profits can be treated as income even if they aren't realised. But you may be able to claim a small % of rent etc. Works both ways I'm afraid. An area requiring some professional tax advice.
 
Electricity at 35cents a hour does not make a huge deduction
Depreciation of laptop sure.
Internet - Some %
Trading platform fees etc perhaps (Live feed for data etc)
Bank fees for a dedicated account maybe

So I presume a component of the rent would not also be a deduction?

Just watch volumes that may define you as a professional trader. Then your acquisitions are on trading account so all profits are based on realised and unrealised gains. https://www.ato.gov.au/General/Capi...-investments/?page=4#Trading_or_business_plan

What do you mean by this? Do you mean if a share hasn't been sold but is still being held, any value of it increasing since it was bought will be an "unrealised gain" & will be taxed?
 
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