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Old 08.12.2018, 10:57
bill_door bill_door is offline
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Re: Short term capital gains taxes in switzerland

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The rules to avoid being classified as a professional look pretty extreme. Anything more than "buy and hold for many years" could be problematic. However, I read this forum a lot and know that some of you guys are much more than "buy and hold" investors. Were you ever approached by the tax services?
individually perhaps, but they are used in combination so overall the result is a pretty vague directive! the end result is not absolute!

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I don't mind paying taxes but this is a bit too much. I don't see a good reason, to risk my money just to be classified as professional and lose large portion of capital gain because of some low volume option contracts. Better to spend that money on beer.
well, get drunk then! it should be clear to you now that capital-gain is very unlikely to be an issue if you are (as we think) a 'small time' trader like many here. what will happen is that your profits from trading will be added to your gross income and your marginal personal tax rate will go up accordingly. and an AVS/AHV adjustment will be needed. you are not going to lose more than a few percent of you profits, if even 1--2 per cent.

perhaps you should actually measure the risk and the cost. i would suggest it is more likely you will loose all your trading money than the tax office will take more that 10% of your profits!

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One more thing... one is alowed to hedge his own position but not to sale them before 6 months. That makes hedhing useless.
6 months relates to the underlying security. hedging is not part of that. consider my example previously. 1/3/4 months covered calls would be an example of what I think is an acceptable hedging approach. If your in the weeklies every week then it is harder to justify.

as you described you seem to be a classic covered call type person. if you are doing this in a limited number of underlyings with1/3/4 month options I don't see an issue. if you are more than that or an active day trader and using all the instruments then you have the additional cost of doing business.
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