RE:RE:The SIB can work in cash account, but not ideal.
It applies as tax no matter what. What percentage depends on your tax bracket, but as far as I know all tax brackets.
But here is an example of what it could look like. assuming puc(paid up capital is $3.50)
Purchase price tender: $43.50
Puc: $3,50
Differece = $40.00 >>> you pay dividend on $40.00 per share (sdn div, etc)
and you get a nice capital loss of $40.
so PUC + capital Loss == $43.50
(Something like that)
Which you can apply against any capital gains you have has during the year.
Stings like hell if you don't have capital gains to apply to the capital loss!
GLTA cept the Dhorties of course.
But if you are going to do this, check with your accountant. I am not one by trade,
Your tax situation may be different
organeer wrote: Does this advice still apply if you (or I) am in a lower tax bracket? Like I don't have a big portfolio.