SPK- Spark NZ (TELCO)

[couta1]

Bought SKT at $4.19 when everyone trash it as i saw the value at this price tag, but many people laughing me ( sky tv thread), i did same thing with CEN, basically finance sound firms with good dividend return when sp is reasonable low for me just buy it,didnt expect sp bounce back tomorrow, but will be some day for sure.

Yeah I thought about you as SKT hit $5 again after continuing to rise immediately after it shed it's divvy as if it didn't matter ( I never laughed, just thought it was an incredibly ballsy move given Sky's outlook at the time) Once again highlights the value of doing your own thing no matter what anyone else on here says.

[Major von Tempsky]

Don't you guys worry about IRD catching up with you and getting taxed on share speculation? My cardinal rule for a start is I never buy and sell the same share in the same tax year! How do you spell tax audit?

[dobby41]

Surely if you are trading then you would be declaring the income for tax?
Same tax year of different doesn't matter - it is the intention (particularly shown by the action of churn).

[couta1]

Don't you guys worry about IRD catching up with you and getting taxed on share speculation? My cardinal rule for a start is I never buy and sell the same share in the same tax year! How do you spell tax audit?

If you buy and sell any share with the primary intent to make a profit then you are liable to pay tax on that profit just like any other similar type of activity, why would you worry about IRD unless your being dishonest? Off course if your running losses overall then there is no tax to pay and you can choose to carry those losses forward on paper and not claim them until you get back in the positive. Whether you buy and sell a share on the same day or five years later has no bearing on your liability to pay tax under NZ law, only your intent at time of purchase.

[bull....]

took my trading profits last week + divs so will re- enter at some stage, still keep my income portion though for hopefully the $4 level at some stage, although I note nzx has had such a run last 5 weeks surely must be a breather soon but hey who knows?

[bull....]

If you buy and sell any share with the primary intent to make a profit then you are liable to pay tax on that profit just like any other similar type of activity, why would you worry about IRD unless your being dishonest? Off course if your running big losses overall then there is no tax to pay and you can choose to carry those losses forward on paper and not claim them until you get back in the positive. Whether you buy and sell a share on the same day or five years later has no bearing on your liability to pay tax under NZ law, only your intent at time of purchase.

yea, just like when I buy a house I never purchase it with the intention to one day sell it for more, it just rises in price no matter what so that's why its tax free because its not your fault price keeps going up is it

[Master98]

I have no ability to be a trader, more be a active share investor keeping invested shares safe and profitable.

[craic]

I'm afraid I will not buy until 341 or lower and it will go lower. I've been playing this game with this share for a few years now and the total number is 37,000. the day I buy they go back on the market at 4cps above the buy price. Tax? Well the division is 30-30-40. 30% set aside for tax, 30% reserve fund and 40% to me. One cent on my lot is $370 so a four cent difference is $1,480 less $400 fees (2 transactions) Profit is only on buy back. Hardly a day passes in the life of this share without a four cent difference. The reserve covers miscalculations when I have to take a small loss to maintain the number. I am cashed up at present and happy to wait but I expect 341 within two days.

[dobby41]

I have no ability to be a trader, more be a active share investor keeping invested shares safe and profitable.

Semantics!
Actions speak louder than words - if you are active and buy and sell the same share regularly then I think IRD would see you as a trader and want tax accordingly.
If you buy a share to keep but something happens and you sell then fine.
But do that often and you are trading.

[couta1]

Semantics!
Actions speak louder than words - if you are active and buy and sell the same share regularly then I think IRD would see you as a trader and want tax accordingly.
If you buy a share to keep but something happens and you sell then fine.
But do that often and you are trading.

Until we get a universal capital gains tax in NZ then multitudes of people will continue to transact millions of share transactions every year with only a tiny percentage of them declaring any trading activity, that's the result you get with grey tax laws.