Originally Posted by
Cyclical
Let's say you've been busy trading since April the 1st and in that time you'd realised a $100k gain (we'll run with easy numbers for argument's sake). You're in the top tax bracket, so you're currently staring down the barrel of a $33k tax bill for your trading efforts. You've got $1m worth of ATM stock with an average buy of $20/share. It pulls back to $18, you sell, booking a loss of $100k. You buy back in tomorrow at about the same price. You've still got the same assets (capital) as you had the day before, plus you won't be paying a $33k tax bill next year. Meanwhile the shares are at $25 come March 31 next year, but you won't be selling them, so still no tax.
Have I got that right, Couta? Beagle, you're our resident accountant, no? Am I off the mark?