Forum Archive Index - March 2002

["Maria Smith" <smith@ps.gen.nz>]

We have set up a company which we use to trade shares .We also buy shares in
our own name which we intend to retain for long term. This means that we
have to decide at the time of purchase what our intention is. There are
probably other ways such as special partnerships but we did it this way
because we were going to set up the company anyhow  for a property that we
were purchasing.


Regards Greg



-----Original Message-----
From: AD <usenetreplies@hotmail.com>
To: sharechat@sharechat.co.nz <sharechat@sharechat.co.nz>
Date: Friday, March 08, 2002 12:57 AM
Subject: [sharechat] trading shares as a company


>I have heard a few people say that it is best to set up a company if you
are
>going to trade shares on a short to medium term basis, but I have failed to
>ever get a direct answer as to why.
>
>What are the actual advantages and disadvantages of setting up a company to
>trade shares?
>
>Also it seems if you trade as an individual you will be deemed to be a
share
>trader by IRD and once they deemed you as a share trader, every trade from
>then on will be taxed even if you apply a long term 'buy and hold' approach
>on part of your portfolio?
>
>Thanks for any assistance
>
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