As investors you might see some good short-mid term trades.
You might also be inclined to think that a stock you want to buy will peak before 1 year has passed, or that might just occur when you initially went long.
So my question is, at what point do you work out that having a company for trading is the best way to trade when you may often miss the 1 year CGT deduction with trades closed out within a year of purchase? - is a company the best entity for this situation?
Is there a figure of taxable income where this becomes apparent?
Has anyone done this with the company tax rate now at 27.5% for businesses with under $25 million turnover?
I think it is important to not be constrained to holding out for 1 year to pass before selling a parcel if you think the timing is indicating to sell. I'd be interested to know if others out there feel this has been important in setting up a company structure for trading.
My understanding of the ATO's classification of being a trader will just let you carry on a trading for personal income and tax it accordingly with any tax deductions for this activity. Am i missing some other thing beneficial here about this classification?
