PEB - Pacific Edge Ltd

[Dentie]

I was under the impression that this is a commonly held misnomer and that hold time is not the vital factor when deciding if one is to be taxed on gains but rather intent at time of purchase?

I'm not sure Blackcap - but it sounds like you may be correct. How does one prove intent? I think the way Miner is doing it looks sound enough. But then, if your "intent" is to invest (or hold long term) - why would you sell after what appears to be a short time - especially if the price started dropping? It must only be to lock in profits - and profit is taxable...as opposed to capital gain.

If you didn't then re-enter when the SP starts to rise again - then you could probably argue you were simply cashing in your long term capital gain. But, if you did re-enter, then the taxman could possibly argue you were trading afterall - trying to make ongoing short term gains.

Conversely, what if you were selling because you were making losses and wanted to limit those losses (as opposed to the above)?

What I do know, is that if your paperwork is not done properly and you can't prove your "intent" - or explain the difference between your paperwork and your actual historic share trades....then good luck with the taxman.

[robbo24]

So couta1 is snapiti, right?

[couta1]

So couta1 is snapiti, right?

Right about?

[BFG]

So couta1 is snapiti, right?

I thought he was Moose?

[Jay]

I'm not sure Blackcap - but it sounds like you may be correct. How does one prove intent? I think the way Miner is doing it looks sound enough. But then, if your "intent" is to invest (or hold long term) - why would you sell after what appears to be a short time - especially if the price started dropping? It must only be to lock in profits - and profit is taxable...as opposed to capital gain.

If you didn't then re-enter when the SP starts to rise again - then you could probably argue you were simply cashing in your long term capital gain. But, if you did re-enter, then the taxman could possibly argue you were trading afterall - trying to make ongoing short term gains.


In this context, Profit/Capital Gain - same thing as far as the Taxman is concerned
If you sold when the price dropped to preserve your capital, maybe an argument.
As you say comes down to intent.

There is another thread that discusses this issue - have a read of that

[skid]

You could but remember once a trader always a trader so you need to decide if all those years of scrutiny to come are worth 7k?(Actually only 2.33k in reality if your on the top tax rate)

I dont agree either on the ''once a trader'' statement--its intent

So by your statement ,i can only see 2 options--either hold long term -dont buy or sell (and accept the sometimes astronomical losses attached)
or hide from IRD...Neither of these options seem logical to me

[skid]

I still have almost $7,000 to recoup on PEB.. maybe I could claim it as a loss :P

Whoops--guess I shouldnt have used you as an example(must have been on previous trades)--but the point is still the same --I would venture to say you would be farther in the hole if you would have done nothing?

[skid]

I know TA is a dirty word to some ,but its interesting how the SP did bounce off Hoops bottom resistance yesterday(of 77)

[Leftfield]

Thank Hancocks, me thinks this a very useful attempt to help evaluate progress for PEB. Much appreciated.

[winner69]

Hancocks - question

Why do you add the Trade Receivables figure of $352k to the reported sales figure of $145k to get your notional total sales figure of $498k

Normally to be recognised as a Receivable the amounts involved are also recognised as / recorded as Revenues.

Just curious