Tax when investing

[koos2]

If i sell on a 100% profit with a dividend of 3% my tax on that is gonna be +/- 13% cgt, thus locking in a (13%+3%) loss. Thus i can withstand a drawdown of 16% every year without any effect?

[SimonPB]

if it is cgt and you top tax bracket, the maths is right .. the theory another story entirely

[koos2]

Thank you, any pointer to a book on the theory, for a index?

[IAM]

Why would you consider the tax on a profit to be a loss? To not be taxed you need to have an equivalent value loss on another share to offset the 100% profit you made