RE:Tax ReasonsI played around with that Wmaver, and I am not so sure that is the case.
For one thing, I think it is 10 month difference in your example,
But ignoring that, and just saying it is about a year, I think they would have to earn a farily high yield if they have a huge capital gain that would be impacted by the AMT change.
If I just look at the federal tax, the rate would go from 16.5% to 20.5%.
That 4% increase is an increase of over 24% in the tax rate.
It is not clear to me yet whether Ontario will also adopt the change. Let's say they don't, then it is roughy a 16% increase in the total tax.
To earn a 16% after tax return in that time period is not necessarily so easy, especially with a short term investment.
Obviously, the LME powers that be will have to do their own math.