Sage Gold Inc SGGDF

RE: $0.50 Flow-through = $0.325 "real financing

[tentongold]

Now i will respond to your answer, as the volumes of the past 6 sessions have likely, or come close to, absorbing the 8.7 million PP by now. Your answer to the above title, on Nov.19 Markvrd. The 40% you refer to is a part of the picture. First you need to be in the 40% tax bracket (in Ontario, you are making over 120K per annum to be at 40%). Say you are since most of the PP subscriber are probably in a fairly high income bracket. You also need to factor in the capital gains tax when you sell. For flow through shares, you can deduct the entire amount you initial pay from your taxable income (so you can deduct 40%). However, when you sell, you need to pay capital gains tax on the full amount as opposed to just the profit. Since the capital gains tax is half your tax rate, you end up paying back a little under 20% of the initial savings when you sell. I am not suggesting that flow through shares don't have a tax advantage. Just pointing out that it is just over 20% as opposed to 40% and that's only if you are in the highest income bracket. Cheers, Mark The pp holder is well within the 40% tax bracket. I'm not out to harm the stock price, i would have replied on the 19th if that were the case, $0.325 is the middle ground in terms to a flow through value at $0.50 in the 40% taxation range after adjustments.