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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Suresh who wrote (24959)	1/29/2000 12:22:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68226

Suresh, There is no difference between short term and long term gains on capital gains in Canada. In my tax bracket, the tax rate is essentially 37.5 percent. of the capital gains whether I make a small amount of money in capital gains in a year or a large amount. It doesn't take much to get into this tax bracket. Canada has a very progressive tax system. The more you earn, the more taxes you pay. By not selling I am essentially only deferring the taxes to a latter date. As I am still quite a number of years away from retirement and the technology stock landscape changes every three year or so I don't really lose anything by sell except more potential gain or losses <g>. I know there is a difference in tax rates in the US. Short term trading profits are taxed as income. If you hold more than one year it is taxed as investment income. What is the difference in tax rates? Part of the reason for the sales was risk control. QCOM had become more than 60 percent of my portfolio. It was prudent to lock in some profits and re-deploy it given that I expected the market to re-trace down. I still hold a sizable position. I just get to sleep a little better at night. I may buy back a trading position, but I am essentially down to the core which I intend to hold multi-year.