I was under the impression that this is a commonly held misnomer and that hold time is not the vital factor when deciding if one is to be taxed on gains but rather intent at time of purchase?
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Is the tax an issue big enough to determine whether you hold or sell?(if so then those holding big paper losses should sell so they can write off the tax loss) the other side of paying tax on the profit.
Also one could argue that they bought to hold but sold only because things got scarey--ie-it was not the intention to speculate for profit.(it was simply self preservation)
In terms of no longer holding shares--he can buy any amount he wishes tomorrow(for a better or worse price) the shares will still be there.
So basically it comes down to price and value
We have had all sorts of debate on the value, and the price has been all over the place today-(which means that investors PERCEPTION of the value has been all over the place)-There just aint no easy answers at this point in time.
I still have almost $7,000 to recoup on PEB.. maybe I could claim it as a loss :P
Actually that's not 100% correct.
When it comes to taxation share investing is rather different to property, I.e unlike property trading there isn't the associated 'taint' from trading.
One can ring fence part of their share portfolio for 'buy and hold' investing (generally non-taxable from a capital perspective) and another part for trading (which is a taxable activity).
The intent should be clearly set out by placing the number of shares desired into a separate account as a long term hold for the express purposes of obtaining dividends eventually which would probably be tax paid at source. The declaration of a dividend from PEB seems a rather will o' the wisp thing at the moment. But if one arrived then all the shares held under those separate accounts would have their intent verified and currently not be subject to tax regardless of how much the share price may have improved. Any other shares would be in the trading account, subject to tax on realised gains and allowable for any claims for tax losses.
Thats how I'm handling mine and the accountant says its ok.:)
Seems legit. Really all that on this page makes sense. Shares are a lot more transient than property and still can produce income.
But the answer is no I cannot claim it as a loss because the loss is being recuperated right now and will continue to do so since I bought today!:t_up: