When is private stock exchange trading considered business?

In principle, private capital gains are tax-free. Under certain circumstances, however, the capital gain may be subject to income tax. Not under the heading “income from investments”, but “income from self-employment”. This could be property gains for architects or real estate agents or stock market gains for bankers.

The Federal Supreme Court has formulated criteria according to which each case is assessed individually to determine whether it is a case of “normal, private asset management” or “commercial and professional” profit. In favour of professional behaviour are the following indications:
• Specialised professional knowledge: Expertise of auxiliary persons is also taken into account
• Frequency of the transaction: the more transactions, the more critical
• Type of procedure: the more planned, the more critical
• Type of financing: external financing is critical
• Utilisation of the profits made: reinvestment is critical
• Hedging of the transaction: critical if hedged by derivatives
• Duration of ownership: the shorter the more critical
Trading in wine or works of art can also quickly be categorised as commercial and thus constitute earned income.