If you have a low taxable income it can be beneficial to sell to realise the CG and then buy back - perfectly ok if you make a CG and not a capital loss. Being retired and with a very low taxable income I have traded a portion of my shares each year trying (and often succeeding) to buy the dips and sell the peaks. This creates a CG each year which tops my taxable income up to the top of the tax free threshold meaning the CG is reported to the ATO but zero tax paid. This also raises my cost base so future sales will create less CG. I do this to minimise CGT that may arise in a takeover where you have no control. If AKE was being taken over, rather than merging, I would have a huge CGT liability if I didn't take this approach. Over the last 5 years I have effectively, and legally, wiped out about $150k of CG.
AKE Price at posting:
$15.66 Sentiment: Buy Disclosure: Held
