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What does investing for a profit mean?
What does investing for a profit mean?

If you purchase shares with the intention to sell them at a profit, rather than earning dividend income from holding them

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Written by Support
Updated over a month ago

If you’ve made a profit from selling any shares, you shouldn’t need to pay tax on any gains, as long as you didn’t buy the shares for the purpose of selling them, aren’t in the business of buying such investments, aren’t a dealer in such investments and didn’t buy them as part of a profit-making scheme. 

We aren’t tax experts, but basically, investing for a profit means you purchased shares with the intention to sell them at a profit (rather than hold the shares and earn dividend income from holding them). You can get much more in depth help deciding if this is you from Sharesight*.

Sharesight is also here to help if you determine you are investing in shares for a profit. Their traders tax reporting tool allows you to import your Hatch buy and sell transactions spreadsheet to get started (find it on your Tax Statement).

💡 Note: *While we think Sharesight are great, we didn't build their tax reports and we don't know your unique tax situation. It's up to you to make sure the tool is right for you and the information you provide to the IRD is accurate.


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