Share Trader - Can deduct laptop & smartphone purchase in same financial year?

I'm wondering if someone trades shares either full-time or as a 2nd income source, would it be possible to deduct 100% of a purchase of a laptop & a smartphone in the same financial year? Both would be used to trade shares online, check share prices, do research, etc.

 

You would have to be running the operation as a business, not just leasurely buying and selling a few shares here and there.
If its deemed investing and not trading you would be expected to depreciate the cost over time following the normal schedule.
If its personal you are only supposed to claim against income production (dividends).

Also keep in mind you are supposed to apportion your private use and work use.

Claiming 100% phone costs probably woukdnt fly.

 

Is it a share trading business ? There is a big difference between a full time operation to trade shares and part time as a second source of income. There are some features of a share trading business that need to be met re turnover and operational requirements - datafeed, etc. A commsec account does not make anyone a trader.

The logbook, diary or other objective evidence for the usage of the phone and laptop would still be needed.

 

If you operate through a company or trust you can consider salary packaging some of these items

A lot of share traders are actually investors - I tend to find that people trade when they lose money and then become investors when they make money!

 

Sorry, yes I meant depreciated over a few years.

By trading shares I mean buying or selling 2 or 3 shares nearly everyday the ASX is open. Either in & out the same day, or holding the shares for a few weeks/months as a short-term trade. That would classify someone as a "share trader", correct? Even if they also have a 2nd part-time job?

 

It is just that shares sold on capital account enjoy the 50% CGT. So often people find themselves in a position to enjoy the 50% CGT and then want to change. TA 2009/12

Be careful that is all. Don't throw away the 50% CGT.

Whether you are a share trader is based on a number of facts and the overall impact of your arrangement. I cannot answer that here.

You will probably need to get written advice from your accountant.

 

The Commissioner recently cautioned about people who think share trading is just based on numbers of trades. There are a range of factors that may be relevant. Remember its not a choice. If you ARE a share trader it can have unintended tax outcomes too. eg unrealised gains are taxable as if they were taken. In many instances "traders"rarely hold shares 12mths + as its ties up capital. That said a share trader may hold some shares on capital account and there could be a trading stock impact of doing that.

Good reading : Claiming losses from the disposal of investments

 

Hi guys,
Just did a quick google and came across the below...In a nutshell (at least for a laptop or desktop), you can claim on them for business/study purposes. You just need to keep a logbook (for study) and make sure its delivered and used in that tax year.
Obviously I'm not a qualified tax adviser and you should seek specialised advise, but I found this a useful guide.

Claiming on Devices | H&R Block