Javascript DHTML Drop Down Menu Powered by Drop Down Menu
FullyInformed.com - Options and Stock Strategies For Income

SignUp For Updates 

  You are here:


Bookmark and Share
 


 

 

SITES I
VISIT
Want A Link To Your Site?
 
Troys MoneyTree
MTR Timing Model

Marketwatch
Globe MarketBlog
Seeking Alpha

The Economist
Day Trading Radio
Wired Magazine
Zeal Speculators

Decision Point
TraderFeed

May 3  / Strategy
Thank You Tax Man
Taxes Paid Today

 

Death and Taxes

Both are inevitable, but sometimes its nice to think that maybe we can take advantage of little things. That is the case with paying my taxes.

 

Last year I did quite well with my investments. I know that the tax man is going to want his share and while I may not like taxes, there isn't a lot I can do about it, or is there?

 

USING THE TAX MAN

All the previous year I was adding to my profit, but I never paid the tax man at all during the year. In fact, I didn't pay anything to the tax man in 2010 for 2010's earnings. I live in Canada so taxes are due by April 30 - or that's the deadline. But April 30 fell on a Saturday so the deadline is extended until May 2.

 

I therefore keep all my money working for the first 4 months of the year and then send in my taxes. My tax returns were all done a few weeks earlier, but I learned NOT to file my tax return electronically. Instead I hold onto my return including the check I have to send them for last year's income tax. I make sure I date the check April 30 but I do not put it into the mail until the very last day, which this year was May 2. I never file my return or pay the return electronically. I want to extend the time before they cash my check.

 

Some day that may end when governments demand electronic filing from everyone but governments in general are huge bureaucracies that are slow to change. They normally have to accommodate everyone including those who are still not using technology like banking on line, to pay bills and such. I'm counting on that being the case for many years to come.

 

By delaying my big payment until the very last day and then mailing it,  I am using the tax man's money to assist with my investing right up until the very last minute. It's certainly better than margin and doesn't cost me a thing in interest payments. Just remember when applying the tax man's money to trades, use it for safe trades that are far out of the money to reduce the chance of assignment.

 

There is nothing worse that using the tax man's money for the first 4 months of the year only to find out that I get assigned, need the cash and have to borrow on margin to pay the tax man.

 

SUMMARY

So while like everyone I am not very thrilled with paying taxes, at least I get to use the money for an extra 4 months of the year. So I guess I can say Thank You Tax Man.

 

 

 

Disclaimer: There are considerable risks involved in all investment strategies. Trade at your own risk.
Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed or presented are financial advice, trading advice or recommendations. Fullyinformed.com is a private website. Everything presented and discussed are the author's ideas and opinions only.
By using this site, you agree to be bound by its terms of use. The full terms of use can be read here. If you do not agree to the terms of use, do not use this site. The author of fullyinformed.com assumes no liability for topics and ideas discussed, errors and omissions, ads and their content and external links. Any corporate insignia used are registered trademarks of their respective company or corporation and are being used for identification purposes only. All material copyrighted by FullyInformed.com. Reproduction in whole or in part prohibited. Copyright 2008

 |  site map  |  privacy policy  |  contact me  |  subscribe  |  exchange links  |  the author of fullyinformed  |