Getting classified as professional investor

Taxes
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Hello,

I am curious about a special case in being classified as professional investor. Take this example:

  1. A person earns CHF 300k a year brutto, but only spends 50k nett a year due to frugal lifestyle
  2. In one tax year, a person realizes CHF 900k from capital gains.

Would such a person break the following rule:

  1. Achieving capital gains from securities transactions is not necessary to replace missing income to sustain your living. This is regularly the case when the realized capital gains are less than 50% of net income in the tax period.

So, it is much more than 50% of net income, but it does not replace the missing income. What does it mean “this is regularly the case”, if it is not usually the case? What if the person did not spend any of that money, and the sale was solely to rebalance the portfolio?

Does anyone have any such personal or documented examples of such situation?

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8 posts were merged into an existing topic: Being classified as a professional trader