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Edited version of your written advice
Authorisation Number: 1051389588035
Date of advice: 5 July 2018
Ruling
Subject: Contracts for difference trading
Question
Am I able to claim my net losses against my other income?
Answer
Yes.
Having considered your circumstances, the relevant legislation and taxation rulings surrounding contracts for difference trading, your net loss is able to be deducted against your total assessable income for the income year 2017-2018 as per section 25-40 of the Income Tax Assessment Act 1997 (ITAA 1997).
This ruling applies for the following period:
30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You only traded in contracts for difference (CFD) in one month of 2018.
During that month you made a high volume of trades which lead to a loss.
You performed the trades from your home office.
You entered the trades with the intention of making a profit.
You intend to make trades in the future, after completing some training and getting some better equipment.
You traded under your own name and did not have a registered ABN for the activity.
You are currently employed and have no intention of leaving your job.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 6-5
Income Tax Assessment Act 1997 Section 8-1
Income Tax Assessment Act 1997 Section 15-15
Income Tax Assessment Act 1997 Section 25-40