Hi
2 questions:
a) for shares purchased and sold on a US stock exchange – does one get the indexation benefit on long term capital gains? LTCG on such transactions is not tax free
b) if one can claim indexation benefit, then what happens if applying indexation actually results in a loss? For example, if I bought a stock for $5 in 2002 and sold for $6 in 2010, I have made a long term gain of $1 but with indexation it is actually going to be a loss since the purchase price with indexation is actually around $8.3
Any ideas?
Thanks