Trading Stock 101

Learn the ins and outs of trading stock for tax purposes, including potential CGT events, trading stock elections, and more.

In this session, we cover:

• Introduction to income tax framework

• Trading stock types, including:

  • Livestock

  • Land

  • Shares, property trust units, futures contracts

  • Bitcoin – digital currency

• Deduction for cost of trading stock

• When is trading stock on hand?

• Valuation of trading stock

  • Cost

  • Market selling value

  • Replacement value

  • Special value in case of obsolescence

• Transfer of property to or from trading stock

• Disposals not in the ordinary course of business

• Change in ownership of stock

• SBE rules for trading stock

• Trading stock on death of owner

Date recorded: 6 February 2025