{"id":296,"date":"2006-11-16T22:27:40","date_gmt":"2006-11-17T02:27:40","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=296"},"modified":"2006-11-16T22:27:40","modified_gmt":"2006-11-17T02:27:40","slug":"himipref-tax-rates-user-specification","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=296","title":{"rendered":"HIMIPref™ Tax Rates : User Specification"},"content":{"rendered":"

Taxation rates are, of course, the be-all and end-all for preferred share investors, which is one reason why I try to stay on top of marginal tax rates<\/a>.<\/p>\n

These marginal tax rates are stored in HIMIPref\u2122 in a series of taxRateDataRecords<\/a> which are kept on server-side. They are usually queried via the taxRateDialogBox<\/a>:<\/p>\n

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They can also be found printed (on paper and on screen) for the active account at the bottom of the reportSummary<\/a>.<\/p>\n

To get the taxRateDialogBox<\/a>, it is easiest to run the programme and choose mainMenu|Reports|activePortfolio<\/a>|taxRate|trading. You can also get it by right-clicking on the relevant column on the portfolioList<\/a>.<\/p>\n

A user has asked whether he should change the taxRateDataRecords<\/a> for his account, since it’s a little different from the “Highest Marginal Rate in Ontario” used as the default. The answer is yes … but not to expect too many changes in the system for a small change.<\/p>\n

To determine whether a trade is recommended or not, HIMIPref\u2122 estimates the total return after tax for both the bought and the sold issues. After adding a little bat’s blood, a trade is recommended if the expected additional return compensates for the known costs of execution (totalFrictionBid<\/a>), plus a little extra to compensate for risk, plus a little more extra because the whole point of the exercise is to try and make some money.<\/p>\n

Tax rates come into play via three channels:<\/p>\n