I have become more and more focused on the effect of taxation on trading vs investing systems.
Vis a vis, (and an oversimplification for sure) what is the difference between a 20% return which is not subject to taxation, and a 40% return which is subject to taxation at your marginal rate of close to 50%?
I’ve gotten to the point where before I put on any transaction I think what are the tax implications of what I am about to do. Indeed, if we are paying tax we are making a profit, but why pay tax every day I have to… Or at least defer it to later years?
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