High Volumes...... Heading North., page-145

Hi Shane,

I'm trying to find confirmation for this on the ATO website but I seem to be having trouble so hoping you can confirm for me (but no doubt you are also going to refer me to an accountant).

You would have made a capital gain when you sold some of your shares (right?), and with that capital gain you purchased more shares when the share price went down. Because you used your capital gain to purchase shares, do you still have to declare and pay tax on that capital gain, or do you not declare it because you dont have to pay capital gain tax as you re-invested it?

I'm thinking of trying your strategy but want to understand the tax implications first.

Regards
J