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Capital Gains Tax? Keep related posts in this thread, please.
....considering I could remortgage on my current rental properties and buy myself a ‘McMansion’ in my own name and have it paid off by tenants and not pay any CGT on that move.
Not sure why you are making this claim.
Surely anything paid off by tenants will be subject to CGT?
Not sure why you are making this claim.
Surely anything paid off by tenants will be subject to CGT?
But I won't be selling them, merely using the equity as security to purchase another property, they may be paid off, and tax will be paid on income profits but the properties won't be sold (thus not subject to CGT). As I understand, and it isn't out yet, an investor will pay CGT on any SALE of property. An investor uses current equity in property to purchase further property, thus there will be nothing stopping an investor doing this for a owner occupied property (as long as the OO is paid off from tax paid rental profits). Alternatively, an investor just continues to grow their portfolio using equity as long as nothing is sold then there is not CGT. Unless I am missing something.
Alternatively, an investor just continues to grow their portfolio using equity as long as nothing is sold then there is not CGT. Unless I am missing something.
Yes, we all know that CGT is on the sale.
Lucky for you, you seem to be immortal and will never sell so you are exempt from CGT.
Well, there are the likes of Graham Fowler with 80 properties, also not interested in selling, as he has the cashflow he needs for whatever he wants to do for as long as he lives. As the saying goes: 'you lose when you sell', but most of us end up having to sell some or the lot and that's why the CGT is a big deal.
Yes, we all know that CGT is on the sale.
Lucky for you, you seem to be immortal and will never sell so you are exempt from CGT.
I wish I were...hopefully the Trust is immortal as long as it gets renewed by my dependents (yeah, right!) and as there is plenty of cashflow, I will not need to sell. That said, the CGT, as proposed at the moment, is dreadful, 33% and will hit those who are new to the investment route..those coming through now will miss what some of us benefited from. For the life of me, I don't know why they just don't do 10 yr bright line for residential real-estate....kind of like property development where there is a 10 year rule. But what I am to know...I was merely lucky due to timing
Like our fearless leader or not she is very savvy... announce on the day before a 4 day long weekend allowing one day of media heat before everyone goes on leave and it's forgotten by Tuesday.
Even if it's not forgotten on Tuesday the heat will be out of it and the pressure will be far less than announcing any given Wednesday afternoon.
Yes too true, and it's how businesses sack lots of people too. Only I don't think it will be forgotten - unless they don't do anything (unlikely). The Easter break will give National heaps of time to work their PR machine and let rip post ANZAC.
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