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Old 08.12.2018, 10:29
bill_door bill_door is offline
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Re: Short term capital gains taxes in switzerland

it's the cost of doing business and everyone wants their cut, including the tax office. you are informing yourself of all the costs upfront. if you don't like them then don't get involved.

as i said before the capital gains is unlikely to be an issue, depending on your strategy. and as I said above the "5 rules" are deliberately woolly for YOUR benefit. it is the individual tax return assessor assigned to your tax assessment that will decide if you are considered a professional trader. you have the right to appeal the classification. it is seems to be the experience that they are pretty lenient because the rules are deliberately woolly (in combination!). you could in fact contact this person and see what they think of your approach and how un/likely you are to be classified.

i could see myself arguing that somewhere between 1-3 month covered calls would be about the limit i.e. in SPY/IWM/QQQ, sell 45 days out 30 delta call, let it expire, or roll it to the next 45 days out. or same for 90 day (3 month plan) or 135 days (4 month) etc. SPY has weekly Wed and Fri expirations now! If I am using those to hedge continuously then it becomes more difficult to justify it as nothing more than an income strategy. 3/4/12 hedges a year would be reasonable, and the tax office IS reasonable in CH.

the main issue I have with the attempt to classify traders is that they focus on 'profits' when in fact what you want to achieve is cost-basis-reduction. it's backwards in my opinion and most authorities I have dealt with don't get it.

Oh, and the paper work! If you start doing anything more that a few trades a month, come year end and tax return time ALL those trades have to be entered in the return software. That is a real pain and an actual real cost of my time!
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