Gain on short eft considered as income?

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Wing
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Gain on short eft considered as income?

Post by Wing »

With the stock market at it's record high, if I'll buy a short eft and have some gain on it, will it automatically make it income?

If not, is the buy and sell date has a month in between will make it a safe capital gains claim?
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adrian2
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Re: Gain on short eft considered as income?

Post by adrian2 »

Wing wrote: 27 Jun 2017 20:30 With the stock market at it's record high, if I'll buy a short eft and have some gain on it, will it automatically make it income?
An inverse ETF is just another security. There are no special rules for it to change the capital gains treatment.
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“It doesn't matter how beautiful your theory is, it doesn't matter how smart you are. If it doesn't agree with experiment, it's wrong.” [Richard P. Feynman, Nobel prize winner]
Hogwild
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Re: Gain on short eft considered as income?

Post by Hogwild »

I was wondering how an Electronic Funds Transfer might be taxable. Spelling :D
Wing
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Re: Gain on short eft considered as income?

Post by Wing »

I've read articles about whether gains will be considered as "gains" vs "income" depends on one's intention (if it's for profit), the number of trades per year and the period the investment is held.

First, I don't think one has the intention for a loss for any investments. Second, if I employ a strategy to buy at several lots and sell at several lots, that can easily add up to over 50 trades in a year. Thirdly, if I buy a stock and it rises by 10% in a week, I don't think a lot of people can resist realizing the profit right away.

I bet it all boils down to whether one is being audited or not.
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