MYX stress test, page-26

Mate,

As with all things, it depends on the variables doesn't it.

Your tax rate, your income, your capital and time, the shares you are in, skill and luck, timing.

For example, I'm also invested in RHC March 2017.( ignoring divvies because I got them all anyway )

Entered originally at $68, current price $52.

I never held more than 600 shares, currently 200.

On 200 shares if I just bought and held I would be -$3200 down now.

But I'm $3500 UP.

That's a $6700 difference

Can't apply a CGT discount on a loss can you.

But I can net of losses and profits.

If I don't sell and buy I can't net them off either.

Lets assume you have an EFFECTIVE 30% tax rate. ( not your bracket which doesn't matter ).
For and effective tax rate of 30% you need to have in income ~$180K ... not a lot of people have that so it's an extreme case and with a lower tax rate it becomes better.

On the $3500 net profit you will pay $1050 tax.

Or if you can apply the CGT discount that is $525 tax.

Which is greater $2450 in my pocket after paying $1050 to the tax man

OR

Nothing in my pocket and a $3200 loss?

I don't think this fear of paying tax is rational, and getting that discount or not selling to avoid tax is not the best strategy. Of course you need to take it into account, but I think most people over do it.

Not that I'm an expert in trading or tax planning.... just my 2c.