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clock Created with Sketch. 15/04/16
23:14
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Originally posted by rexless
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No dude. you don't only work with profit. You re-invest it all and you only REALLY pay the Capital Gains on your final sell. If you have a play that's built up a million bucks profit from a $50K invest over a year but your target is $2 million due to the expected drill program etc. or medical legislation change or whatever, (and Capital Gains is 50% by the way, not 30%) you are not expected to cough up $500K in tax for that year just because you made the gain that year. I have held many a stock past a financial year period and I only pay tax on the balance sheet of all the trades. I'm not an accountant and I'm feeling like I'm not really clarifying the point exactly but to answer your question, you don't only put back in what your profit is. Maybe you make a loss to start with, so depending on where you set your stop loss will depend on what you have to re-invest, if you stick to that stock now after the last announcement, where to get back in, etc. etc.
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LOL I don't know who is your tax agent, you better change before the tax man catches up to you.
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