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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: At_The_Ask who wrote (67433)	2/26/2003 9:48:20 AM
From: Moominoid	Read Replies (1) \| Respond to of 209892

The wash sale rule is a scam too to keep people from actively trading. It's just plain silly. Once you stop a series of trades in a security in the stock you can book the net gain. If you can show you are a trader then you mark everything to market at end of a year.... So what does this rule do apart from complicate things? Australia doesn't have the wash rule by the way. It doesn't have the AMT either. It also allows "negative gearing" where you deduct interest expense against general income. But you can't deduct any capital loss against general income (but no mortgage interest deduction for owner occupied property only for investment purposes). And then there is the great franking/imputation credit system which eliminates double taxation of dividends. The Aussie system favors lots of leverage into dividend earning stocks as well as trading of them. The US system seems to shun trading and leverage but favor capital gains strongly over dividends. (Margin ratios allowed are much higher in Australia too). Australia recently introduced a long-term capital gains tax rate. One cool feature is that all losses are computed at the short-term rate.... that isn't the case with the US system.