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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (8420)	8/19/2006 1:46:37 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 217659

What does being a "share trader" trigger in New Zealand tax law? In the parlance of US tax code, most people want to pay capital gains tax. Short-term gains are taxed at your higher normal tax rate - when you sell. Longer-term, or otherwise tax-advantaged transactions, are taxed at the lower capital gains rate - when you sell. But your total net-losses can only be written off against your other income at the rate of $3,000 per year. People often try to opt for "securities trader" status, although this doesn't make sense to me. With "securities trader" status, your total current gain/loss on your securities is taxed each year, even though you haven't sold the shares yet. (a horrible deal so far) But with "securities trader" status you can write-off a broader range of trading expenses against your income. And you can write off all of your total net-losses against your income, without a $3,000 annual cap. .