Forum Archive Index - February 2000

[Nigel McCarter <n.mccarter@clear.net.nz>]

Totally agree Mark,
which is another reason why I am prefer value investing, since if you sit
down and work it out, the gains required to offset taxes are substantial
and in most cases unlikely.

On the other hand, if you buy shares for the long term, you get taxed on
the dividends less imputation, sure, but the capital gain is actually free.
So the question becomes what is long term. 
Interestingly, Australias new Capital Gains Tax rules means that gains from
trades held for less than one year are liable, whereas trade gains held for
more than one year are taxed at a lower rate.  The stated intention being
to encourage long term share holding

> however, the expenses incurred with share trading are
>not large, at all, and you will still be more disadvantaged by paying tax on
>capital gains, than otherwise. Unless of course you're planning on making
>lots of losses (and remember, a tax loss IS a loss).
>
>
>
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Nigel McCarter
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