i hate this tax selling!!, page-36

re: capital gains Hi all,

Happy to see such a thread as I've been toying with tax strategies myself.
Lets say for argument sake that Tom has 100K shares. In 5 years time he has decided to take his money and run at $10 a share paying a discounted CGT of around $250K depending on his tax bracket of course. Alternatively, Jack locked in profits along the way whilst earning an income. So again lets assume 25% CGT. At the end of the day he will still pay $250K CGT on his 100K shares. I can't see the benefit in locking in profits along the way as I did when the HDRO's were trading at a discount. This also made me a few dollars of course. The only advantage I see locking in profits along the way is if Tom doesn't earn an income and decides to sell a small amount each year after he retires. This way he will pay around 15% CGT (discount rate) as long as he stays under the higher tax bracket.
Something many of us will have to look further into no doubt. Especially if HDR performs the way I envisage.

Excellent effort to those that have contributed.

Cheers,
xmagx