Originally Posted by
Cyclical
Right peeps, I wouldn't mind adding a few more of these to my portfolio too, but I'm in a bit of a predicament, and no doubt I'll cheese some off for going "off topic" and bringing up the T word again, for which I apologise in advance, but for me it is very pertinent to this stock and this thread does have a greater portion of switched on contributors, so here goes...
So I've accumulated a good chunk of these (all relative of course) over the last few months and my average is sub 80c. I'd like to buy another parcel with some cash that I may need to pull back out of the market again in the next few weeks or months, but in the interim hoping to make a tidy little capital gain. So let's say I bought a bunch today at 136c and sold them again in 2 or 3 months for say 163, netting a tidy 27c per share / 20% gain in the process. However, because my average buy for all my OCA is 80c, does the tax man consider this as an 83c gain, upon which I'm expected to pay 33%, or 27c per share? In which case all I've done is transfer 27c from other investors to the IRD. And in the quite likely scenario I don't manage to get that 20% gain, I'd be in the red. No doubt this is a grey area and the vast majority of investors / traders probably wouldn't give it a second thought, but unfortunately I am and it's seriously stopping me from plunging deeper into this stock. Any experts out there to tell me I've got it wrong and have nothing to worry about and to just go all in?!
Thanks in advance and sorry for the "off topic" but there's nothing else to do around here until January, right?