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Tax Induced Trading

Tax Induced Trading
Author:
Publisher:
Total Pages: 29
Release: 1988
Genre: Capital gains tax
ISBN:

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Tax Reform and the Cost of Capital

Tax Reform and the Cost of Capital
Author: Dale Weldeau Jorgenson
Publisher: Oxford University Press
Total Pages: 210
Release: 1991
Genre: Business & Economics
ISBN: 9780198285939

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Introduction -- Taxation of income from capital -- The U.S. tax system -- Effective tax rates -- Summary and conclusion.


Tax Induced Trading

Tax Induced Trading
Author: Paul J. Bolster
Publisher:
Total Pages: 37
Release: 2012
Genre:
ISBN:

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The abolition of the favorable tax treatment of long term capital gains forced investors to reassess traditional year-end trading strategies used to manage tax liabilities. This study compares with year-end trading behavior in previous years with that observed at the end of 1986. Traditional strategies involve selling both short and long term losers and holding short and long term winners. Our results affirm previous findings concerning tax induced trading at year end. However, for 1986, we find that the anticipated tax code changes had a powerful effect on trading behavior. Compared to previous years, relative trading volume was considerably higher in December of 1986 for long term winners and lower for long term losers. Additional results indicate that traditional patterns of trading induced by short term capital gains and losses were also altered substantially in 1986.