I was thinking lately to something which would convert dividends from bonds to capital gains, but I am quite sure it would not work, but maybe anyone would have more experience with it.
So, if for example I am buying a bond etf after the interest is distributed (lower price) and would sell it in 6 months, before the dividends are distributed (hopefully I can find etf which pays interest each 6 months or each year), I would get the etf dividends as capital gains. Then I will find another bond etf in similar setup and do same… At the end I am selling before the dividends are distributed, so I capture the capital gains for it.
But probably it is obvious for the tax office what I am doing and maybe they put me to pay the dividends tax or worse to give me the label of professional trader.
Anyone did something like that or has some insights?