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Resources on demand

The loss of losses – considering whether losses are on capital or revenue account and traps with the non-commercial loss rules

As advisers, it is important to remain up to date on the current authorities in relation to carrying on a business or a profit making undertaking in the context of share or cryptocurrency trading activities. It is also important that we understand the interplay between the non-commercial loss rules and share trading businesses or profit-making undertakings.

$110.00

Description

With rising interest rates and uncertain economic conditions after COVID, we have started to see an increased focus by the ATO on the deductibility of losses from businesses or profit-making undertakings.

Share and cryptocurrency trading, in particular, have seen more losses in recent times and the issue is whether these losses are deductible.

As advisers, it is important to remain up to date on the current authorities in relation to carrying on a business or a profit making undertaking in the context of share or cryptocurrency trading activities. It is also important that we understand the interplay between the non-commercial loss rules and share trading businesses or profit-making undertakings.

In this session, special counsel Murray Shume will look at how to identify when someone is carrying on a business or profit-making undertaking and work through the non-commercial loss rules with a focus on trading shares and cryptocurrencies. He will do this with the help of case studies featuring his intrepid sheep dog, Bessie.

After this sesion, you will be able to identify:

  • the key learnings from the decision in Greig in relation to carrying on a share trading business or a profit-making undertaking in the context of shares
  • the difference between a trading business and a profit-making undertaking
  • the main issues that arise under the non-commercial loss rules in the context of trading shares or cryptocurrencies
  • mitigation strategies that your client can implement if they are deducting trading losses.