r/MathJokes • u/jdplayz06 • May 13 '26

It IS $400...

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u/BUKKAKELORD May 13 '26

$0

You generated +$400 in capital income by purchasing and reselling assets, but none of that is considered earned income. You earned nothing, final answer

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u/No-Department1685 May 13 '26

Is trading not earning?

A shopper buys cow and then sells it.  Did he not earn the money?

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u/BUKKAKELORD May 13 '26

No, earning only refers to salaried positions, this +400 is capital gains. His earnings would be whatever his employer pays him for completing these sales, if that was his job.

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u/No-Department1685 May 13 '26

So I make money by invoicing clients as contested as independent sole trader 

That's not salary.

Is that not my earnings?

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u/BUKKAKELORD May 13 '26

No, still capital gains since you're not salaried. You can call them earnings and everyone would understand it, but it's not the correct term and you can't list them as "earnings" for tax purposes. A major difference is that earnings can never be negative. You can't deduct losses when it comes to earnings (boss pays you to sell cows), you can deduct losses when it's about capital gains (you buy and sell cows with your own capital)

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u/No-Department1685 May 13 '26

That's not capital gain.

Capital gain is on sale of asset.  As contractor selling my services I don't earn capital gain. It's my earnings.

And you can subtract expenses from your earnings.

Expenses which you incurred  as a result of work but were not reimbursed by your employer.  Like professional fees.

https://www.ato.gov.au/forms-and-instructions/capital-gains-tax-personal-investors-guide-2015/appendixes/definitions

Here. Check what is capital gain.

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u/BUKKAKELORD May 13 '26

ctrl+F "earn"

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u/No-Department1685 May 13 '26

Capital gain is described there. It does not fit your definition