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

To: Elroy Jetson who wrote (8421)	8/20/2006 12:48:16 PM
From: Maurice Winn	Read Replies (3) \| Respond to of 217679

Being a share trader triggers capital gains taxes. All I have to pay on QCOM is dividend tax. No capital gains tax, even if I sell. But that's going to change and 5% of the market value of assets will be taken every year, irrespective of dividend or paper capital gain. It's an absurdly high tax and will force investors to do something. Leaving the country won't be out of the question for many. After deducting tax of unrealized income of 5% each year, then inflation of about 4% or 5% in NZ, there isn't much left from any normal sort of investment. There would normally be a deficit. That's even without risk being included. Buying gold and putting it under the bed would be better. Groan. I can't believe I wrote that. Mqurice

To: Elroy Jetson who wrote (8421)	8/20/2006 3:55:16 PM
From: glori	Read Replies (1) \| Respond to of 217679

<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)> Not true. That is only true if you elect "mark to market" accounting. But you can claim "trader" status and file a schedule C with deductions for trading expenses, even if you do not elect "mark to market." (back to lurking; I enjoy the thread)