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  1. #1
    Senior Member
    Join Date
    Jul 2007
    Location
    North Shore
    Posts
    1,088

    Default Hedging a long-term portfolio and tax

    Hi guys,

    What happens if I were to sell short index futures to protect against a fall in my long term investment shares?

    Would any capital gains from the short position be taxable?
    Disclaimer: Do not take my posts seriously. They are only opinions.

    AMR has sold all shares and is pursuing property.

  2. #2
    Legend shasta's Avatar
    Join Date
    Sep 2004
    Location
    Wellington
    Posts
    5,914

    Default

    Quote Originally Posted by AMR View Post
    Hi guys,

    What happens if I were to sell short index futures to protect against a fall in my long term investment shares?

    Would any capital gains from the short position be taxable?
    Good question, & the answer revolves around your timeframe, number of trades & ultimately intent.

    Short selling is just another market deriative like, warrants & options

    If you were doing this purely to hedge your long term investments, i'd say you're fine.

    End of the day, when people start questioning if they are trading or not, they usually are, no point getting cute with the IRD, they dont have a sense of humour!

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