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

To: Maurice Winn who wrote (8480)	8/21/2006 5:40:27 PM
From: Moominoid	Read Replies (2) \| Respond to of 217789

The bottom line is if QCOM goes up you'll need to sell something like Number of shares = Capital gain.85t/price in order to pay the tax each year. Where t is the tax rate of 33 or 39% or something. But this tax is capped to a maximum of 5% of the starting market value of the shares that year each year. The cap is relevant if the shares rise more than 15% or so in a year. But the excess tax you avoid paying that year is carried forward to the next. I didn't see any explanation of what happens if the price of your shares goes down. Really complicated. No idea why they don't just go with realised capital gains like everyone else.