Telstra Buyback Entitlements Ending Today - Do I Buy?
Get More Commentary, Discussion & Market Information On -
Based on current prices TLS Off-Market Buy-Back is a great deal for some investors or a taxation nightmare for others.
We’re expecting to see a flurry of low tax entities (SMSFs in Pension phase etc) buying up TLS into the close today.
Using Tuesday’s closing prices investors with 0% tax entities are crunching numbers and forecasting a 13% return. While all other domestic investors who have to pay tax are forecasting a tax loss with a lumpy income-tax bill in their next tax return. For most investors the buy-back is confusing.
Here is the offer explained step-by-step. Make sure you check with your broker and taxation specialist to check you won’t get caught with the lumpy tax-bill.
Christopher is head of equites at Spring Financial Group. Christopher has over 10 years' experience managing equities desks with thousands of retail clients and responsibility for maintaining and servicing retail and wholesale relationships.