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FightTheFuture
Registered: Jun 2006
Posts: 1709 |
01-13-09 04:45 PM
Quote from themarket:
People, people....calm down a minute. Did anyone actually read the article? The article called for a .25% tax. POINT 25 %. That's NOT 25 % . Its 1/4 of 1%. I hate taxes as much as the next person, but its hardly the end of the world.
Readjust your portfolio at the end of each quarter and you are paying 2% per year. Better to put your money in a CD.
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DmanX
Registered: Dec 2008
Posts: 163 |
01-13-09 04:49 PM
Quote from themarket:
I'm glad you get it...maybe I don't. If I'm in error please let me know. The way I trade, if I make $500.00 on a YM scalp my tax would be $1.25. That's not a big deal. The article didn't specify where the tax is applied. Is it to profit? To the total VALUE of the underlying? Do you know?
It wouldn't be taxing profit. They already do that and call it an income tax.
Allegedly, they would tax some value of the transaction - like a sales tax. Problem is, futures contracts have no intrinsic value. They have notational value.
There is no buy and hold strategy with futures as they are wasting "assets."
So, let's say they decided on the notational value upon which to base the tax. Take the E-mini S&P 500...
It's notational value is $50 x the index price. So, if the index were at 1000.00, the notational value would be $50,000.
Tax on that, per side, would be $50,000 x .0025 = $125. Or $250 round turn.
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themarket
Registered: Oct 2005
Posts: 117 |
01-13-09 04:52 PM
Quote from DmanX:
It wouldn't be taxing profit. They already do that and call it an income tax.
Allegedly, they would tax some value of the transaction - like a sales tax. Problem is, futures contracts have no intrinsic value. They have notational value.
There is no buy and hold strategy with futures as they are wasting "assets."
So, let's say they decided on the notational value upon which to base the tax. Take the E-mini S&P 500...
It's notational value is $50 x the index price. So, if the index were at 1000.00, the notational value would be $50,000.
Tax on that, per side, would be $50,000 x .0025 = $125. Or $250 round turn.
Thanks
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