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Not this term / But Policy for their next term (From our nice socialist / communist masters)
Okay so if National dont get in 2023 or 2026 then we will have a Wealth Tax of some sort that David Parker is setting the ground work for.
https://www.newshub.co.nz/home/polit...ealth-tax.html
The plan will look something like this, basic Scenario.
Mum and dad investor has own house and 2 rentals and a car and a boat so lets say 5m total Assets.
They work hard and owe the bank only 1m and either intend to keep one for retirement savings and live off income or sell at some point.
Hand one down to the children.
That 4m equity is taxed at say 3% which is $120,000 per year forever or $2,400 per week tax.
Take that on top of current property investments where you are already paying tax as you cant deduct interest costs.
Nice, great incentive to get ahead in life, obviously they want everyone to be employees of the state and get our daily peasant rations, like the good peasant slaves they want us to be.
But, regardless, lets thinks this through, as we obviously need to start planning now to avoid this if possible, what are the options, lets brainstorm.
1. Move assets Offshore as my friend is doing - selling residential housing here and buying in Costa Rica - does this work.
2. Residential Properties in Trusts that are for your children - does that help at all - likely not.
3. Business ventures - selling residential and buying a business or you already have one - are you going to be paying 3% tax on the equity in a business as well -as that is wealth.
4. GST registered business that buy and sell property - could be better cashflow wise paying tax on profits made at 33% - instead of being hammered 3% every year on percieved wealth.
5. Gifting a 1 Millions dollar property to a teenage child - how does that work, is the child now paying the 3% tax instead ?
6. Commercial property - is this the solution and where larger longer term investors end up eventually anyway. What are the experts views on this one, I think it works.
Okay so if National dont get in 2023 or 2026 then we will have a Wealth Tax of some sort that David Parker is setting the ground work for.
https://www.newshub.co.nz/home/polit...ealth-tax.html
The plan will look something like this, basic Scenario.
Mum and dad investor has own house and 2 rentals and a car and a boat so lets say 5m total Assets.
They work hard and owe the bank only 1m and either intend to keep one for retirement savings and live off income or sell at some point.
Hand one down to the children.
That 4m equity is taxed at say 3% which is $120,000 per year forever or $2,400 per week tax.
Take that on top of current property investments where you are already paying tax as you cant deduct interest costs.
Nice, great incentive to get ahead in life, obviously they want everyone to be employees of the state and get our daily peasant rations, like the good peasant slaves they want us to be.
But, regardless, lets thinks this through, as we obviously need to start planning now to avoid this if possible, what are the options, lets brainstorm.
1. Move assets Offshore as my friend is doing - selling residential housing here and buying in Costa Rica - does this work.
2. Residential Properties in Trusts that are for your children - does that help at all - likely not.
3. Business ventures - selling residential and buying a business or you already have one - are you going to be paying 3% tax on the equity in a business as well -as that is wealth.
4. GST registered business that buy and sell property - could be better cashflow wise paying tax on profits made at 33% - instead of being hammered 3% every year on percieved wealth.
5. Gifting a 1 Millions dollar property to a teenage child - how does that work, is the child now paying the 3% tax instead ?
6. Commercial property - is this the solution and where larger longer term investors end up eventually anyway. What are the experts views on this one, I think it works.
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