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Share trading businesses are treated as cash.In your example:1....

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jimmy1979

2,976 Posts.

23

06/08/20

17:16

Post #: 46355545
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Originally posted by UKGUY1983: ↑

Question and I know many will suggest see an accountant. However just wanted to throw it out there.....

Lets just say you purchased $5000 of a stock at .25 and lucky enough to double your money in a short time frame and sell for .50. 100% profit.

Obviously you will face a capital gains tax on 100% of the $5000 profit. If you were to reinvest the $5000 and then lost 30% would this -$1500 loss be able to be used to offset the initial $5000 gain? Therefore almosted netting out?

Essentially could you take some risks on these crazy pumps happening...if you knew you were going to pay the tax man $1500 could you try these pumps and if you lose just means nothing for the tax man?

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Share trading businesses are treated as cash.

In your example:
1. Profit - $5000
Tax payable based on your marginal rate (for .e.g. 49%) = $2450

2. Profit = $5000
Loss = $1500
Net Profit = $3500
Tax on Net profit = $1715 (using the 49% again)

The way I look at it, is when I make a loss, half of it comes of my tax bill
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