For an investor, the cost of acquiring a parcel of shares is a capital cost and the shares become an asset. For a share trader, this cost is the cost of acquiring trading stock and is therefore an expense incurred in producing assessable income. The difference in the tax treatment between assets and stock ?and between investors and traders ?is enormous. What are these differences? When does an investor become a trader? These and many other questions are answered in this new book.Tony Compton uses his many years of experience as an accountant to guide the reader through a wide range of tax issues, from setting up a company for trading to timing the sale of shares, and claiming expenses. He pays particular attention to the legal differences between being a trader and investor, and the significant effect this will have on available tax deductions. He also discusses dividends, negative gearing, capital gains tax, record-keeping, futures, managed funds and tax planning. The author provides a wide range of examples to demonstrate the effect of different approaches.

Checklists are also provided for traders and investors to ensure they are claiming their deductions in full.