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The problem is I'm already in a S&P500-tracking ETF, for a decently large amount of money. Selling it off would be a big taxable event for me, something I don'
by kelnos 5mo ago
The problem is I'm already in a S&P500-tracking ETF, for a decently large amount of money. Selling it off would be a big taxable event for me, something I don't want to do.
- philipallstar 5mo agoWould you be taxed even if you put it straight into another fund? Genuine question.
- sokols 5mo agoYes, because when you sell it, you get cash and profit. Profit is taxable, in Germany they tax it with 25% + Solidarity Tax + Church Tax (if you are a member of a church). After, you can go ahead and buy another fund, but in between you "shed" a significant amount of money.
- eru 5mo agoDetails depends on jurisdiction, of course. In the US, you would likely also have to pay capital gains taxes for such a trade. (I think.) In Singapore, in contrast, swapping between funds like this would not have any tax implications.
- rjmunro 5mo agoCould you use a prediction market (or Spread Betting in the UK) to hedge against your ETF loosing money during the period? If the ETF lost value, the hedge would gain it back and vice versa. You wouldn't need to sell the ETF and you'd only be liable for tax on gains from the prediction.