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Edited version of private ruling
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Ruling
Subject: Non-commercial losses - assessable income test
Question
Is the dividend income from shares held as trading stock in a share trading business included in assessable income for the non-commercial losses assessable income test?
Answer: Yes.
This ruling applies for the following period
Year ended 30 June 2010
The scheme commenced on
1 July 2009
Relevant facts
You conduct a business of share trading.
During the year you have received dividends from shares that are held for trading purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 35-30
Reasons for decision
The dividend income does form part of your assessable income, as ordinary income. Because the dividend income is derived from shares held as trading stock in your share trading business activity, it is considered to be assessable income from the business activity.
Under section 35-30 of the Income Tax Assessment Act 1997 (ITAA 1997) the dividend income can be included as assessable income from the business activity.
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