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The longer you can put off paying taxes the longer you can keep that portion of the money and earn a return on it.
by harryh 10y ago
The longer you can put off paying taxes the longer you can keep that portion of the money and earn a return on it.
- redcalx 10y agoThere's also an annual allowance (in the UK anyway), so you can sell enough to make 11k (approx.) profit a year before capital gains tax kicks in.
- ChuckMcM 10y agoYes and no. If you hold a stock you avoid paying taxes on it and if that exact stock goes up, you "win" because you get more for it later. However there is no way to get a "return" on the capital that is tied up in the stock in some other way without some shenanigans. One dubious way was taking a loan out at the full value of the stock (stock is collateral) and then using the proceeds from the loan to invest in other funds. Back when day trading was "the thing to do" I met a guy who was full of these schemes and like the mortgage crisis later, when the crash came I'm not sure how they unwound, even if they did.