I'm still enthusiastic about the long term trajectory of the sp hence why I'm actually holding more shares than I did last week, selling and rebuying more is a bullish strategy from my perspective.
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Yeah, we might be off topic here, but it's quite relevant to what one or two of us are up to with this stock...
Not necessarily. It would be prudent to use caution so as not to appear as blatant tax avoidance, however, at this point in time you may consider yourself as a trader (and let's face it, most of us have probably been doing a fair bit of trading this FY given the market turmoil, for whatever personal reasons) and you're up significantly while you've been swapping in and out of shares deciding where to put your funds long term... As things settle down, you dial back on the trading, realise some losses here and there that negate the previously realised gains. And then you might think, right, ATM looks like a good long term prospect and you think they'll be paying a dividend in the coming years, I'll buy a shed load at about the same price I sold them for the other day, but sit on them for the years ahead and quit "trading" at that point. Does that mean you pay tax on capital gains in the years ahead?
I'll run with that until I learn otherwise.
Once a trader, never an investor? So because the kid traded a few shares with his paper round money back in '87, he's tainted forever as a trader and will be treated as such for tax purposes for the remainder of his life? Seems rough.
ATM's looking good to short ;-)
Trading profit and capital gain is the same thing its upwards SP momentum except 'Traders' pay tax on any profit offset by their losses but can buy/sell daily without any limits.
'Investors' buy and hold for longer then a year. Cannot offset losses but any capital appreciation becomes tax free.
Agree with @bull regarding two unquestionable separate accounts.
But doesn’t the taxman look at ‘Dreamcatcher Trading’ and ‘Dreamcatcher Buy and Hold’ just as one (not 2) Mr Dreamcatcher and class him a trader
My first ‘discussion’ with IRD re trading was that they noticed I had 2 stocks that had never and were never likely to pay a dividend so claimed I was only in for trading gains (I gather they trawled through a couple of share registers). I was forced to disclose other ‘investing activities’ and was deemed a trader and a told once a trader always a trader etc etc.
As you say I doubt 2 separate accounts means a lot, its all about frequency of trading and history etc, because we don't have a CGT and the current trading rules are grey they should just introduce a brightline test like they do with property but lessen the timeframe. Those that trade full time as a job wouldn't come under the brightline test so no probs.
As my LTH investment portfolio goes back years and cannot be used for trading.
Hence "Dreamcatcher Trading" a totally separate account which always 'pays tax' whether it buys/sells/holds its status never changes its sole purpose to make profit. Clear as mud I believe imo.