the multiplyer effect, page-28

I have mentioned a few times that in trading tax should be taken into account. Also if trading frequently the tax department will tax profit as income in that year and not capital gain. I get taxed as income as they have defined me as a trader. Tax is a part of life that is better faced and paid but it can be minimised with planning. Planning includes income splitting if the trading is done in joint names, offsetting costs and superannuation benefits.

But remember if you are paying taxes it is only because you made a profit. The bigger the tax bill, the bigger the profit. If you pay it as you go it is over and done with. A few years ago I sold a large holding to invest in a new venture. Sold assets worth xxxx to pay the bill. Got a tax bill for that sale. Next year sold assets worth XX to pay the tax bill and the following year sold more assets worth X to pay that bill. Prefer now to have the tax paid and the balance is all available.

Nobody will hold EDE "forever". Hold long enough and the tax rate is less. Of course governments change the rules. Who knows what the tax implications will be in the years ahead. I doubt the rates will be less. Maybe to be taxed now as income will be much less than a future capital gains tax.