Ann: Bonanza Resource Delivers Bonanza Results, page-23

If you buy as an investment there is no tax on any gain (and no tax deduction on a loss either). That is until Labour gets in and introduces a capital gains tax, as they seem to want to do. If you buy to trade then you will pay capital gains tax at your marginal tax rate/deduct loss because it is regarded as income. The tricky bit is to convince IRD whether you invested or traded. I understand that as a general guide, if you hold the stock 12 months or more then it can be considered an investment, otherwise it risks being classed as trading activity. As with all these things you are wise to take professional advice. Some people both trade and invest and in that case I think it is best to maintain separate trading and investment accounts with your broker with some documented evidence as to your intention for each account when you open them. Of course, if you buy as an investment and then sell early at a loss, you cannot pretend it was trading in order to get the tax deduction. I suspect too that if you declare an account to be for investment but show a regular pattern of buying and selling at periods under 12 months, your declaration could be overturned by IRD. However, I am not a tax expert and so get some proper advice.