Some with savings are buying into markets seeking to later resell at profit when this is over. With the ASX off so much its opportunity to profit on the rebound I will set aside the asset risks and exposure for now and focus solely on the tax issues that this may produce. 1. Is interest on borrowed $$$ deductible. Not likely. 2. When I resell only half the profit is taxable right ? No. Why ? Whats different ? Buying shares or ETFs Trusts etc etc with a intention to resell for profit is old tax law. Long before CGT laws were added to tax law. Its worth revisiting these older concepts since its times like this tax agents will need to remind clients of how tax law works and clear any confusion. Buying shares in this manner is not a CGT event since there is no CGT asset. The purchase is an isolated profit making intention and a revenue account asset. This prevails unless there is no CGT asset under the dual taxation laws to prevent double tax. The ordinary income tax rules apply first unless the asset is a CGT asset. These will apply the taxpayers marginal tax rate to the resulting profit. Any costs incurred may be deducted. eg interest. So any interest deduction is deferred to match the profit. Apportioning issues will pose a issue for some taxpayers and a reasonable appotionment is only required provided there isnt a blended loan. Q : So if I hold off and sell after 12mth + 1 day only 50% is taxed right ? No. The assets were never a CT asset so a CGT event doesnt occur. So no discount can occur either. But I reckon the shares may pay a dividend ? They used to. Is that why you bought them ? The key issue is eleigibility and intention when you buy. Many distributions and dividends will be suspended if they have not already. In some cases a person who does buy to seek the dividend income may have acquired the shares on CGT account. eg Fred owns 4,000 CBA shares and loves the idea they are now cheaper and wants to double down for the long term. That seems OK and he wil likely demonstrate that intention by - Not selling over the medium to long term. Each case must be considered.