4 by next week , page-21

hi spartz - thanks for the reply. i dont have a spreadsheet for that, but thats a really good idea. the calculations aren't "super" difficult as you can see from above, but i guess it depends how often you'd use it as to whether you'd make one. i dont need one at this stage.

i DEFINITELY think tax consideration should be a part of your trading plan. why pay more than you have to to the ATO. timing is everything.

i was just thinking to myself, when would holding for 12 months not be the best move? well, there are a few (probably more) times, but the most obvious to me are:

1. ewl might still choose to sell WHE if he [i assume?] believes WHE might come back to say, below $3.00 - as rebuying at this price offers enough benefit to offset the EXTRA tax they will pay. and enough margin for error. but he will only rebuy if he thinks WHE will experience subsequent price appreciation.

2. ewl might have always intended to sell within 12 months (maybe wanted to build a house extension??) and believes this will be the highest price realisable before he intended to sell the share (not the case per his comments)

3. ewl might think the shareprice will still be at $3.86 this time next april. tax savings would equate to 32.35 cents per share (8.38%) - but ewl might believe higher gains are possible by selling WHE and buying something else. he'd need to make 12.23% on the new share (if he wasnt planning to hold the new share for 12 months) before 31.5% tax, as the 8.38% gain on WHE is actually a tax saving (ie: effectively an after tax gain).

and we know long term the sharemarket offers up approx on average ~10% gains per year, so the risks are there.

and im sure there are hundreds of other "personal" reasons one might sell for.

IMO if you're investing any sizeable amount of money in the sharemarket, i think taking time spent to learn about CGT (it really isn't that hard) would be the best investment you ever made - because when applied correctly, it will maximise your gains from your trades by minimising tax. every time.

IMO a SMSF would be the vehicle for your trades if you're already "set up" outside of super, or nearish retirement. then you can buy and sell as you please, as tax is always 15%! but until then.......