Molly is an electrical engineer. After seeing a television program, Molly decides to become involved in share-trading activities.

Molly sets up an office in one of the rooms in her house. She has a computer and access to the internet. Molly conducts daily analysis and assessment of developments in equity markets. The resources she uses include financial newspapers, investment magazines, stock market reports, charts and trend lines.

Molly's objective is to identify stocks that will increase in value in the short term to enable her to sell at a profit after holding them for a brief period. All the transactions were conducted through stockbroking facilities on the internet. The average time that Molly held shares before selling them was twelve weeks. Molly's activities show all the factors that would be expected from a person carrying on a business. Her share-trading operation demonstrates a profit-making intention even though a loss has resulted.

Molly's activities are regular and repetitive, and they are organised in a business-like manner.

Carrying on a business of share trading | Australian Taxation Office

The volume of shares turned over is high and Molly has injected a large amount of capital into the operation. George is an accountant. He has bought , shares in twenty 'blue chip' companies over several years.

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George bought the shares because of consistently high dividends. He would not consider selling shares unless their price appreciated markedly before selling them. Although George has made a large gain on the sale of shares, he would not be considered to be carrying on a business of share trading.

ATO tough on 'professional trader' definition | Investment | InfoChoice

He has purchased his shares for the purpose of gaining dividend income rather than making a profit from buying and selling shares. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

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