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TV programme "Our first Home" will get taxed on profits. About time! These programmes just encourage tax free profits and people think there's no consequence.
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Who said they didn't pay tax?
I wonder why the "tax expert" didn't want to be named? -
Are any of the contestants builders or in building related trades ?
They may wanna read this then.
Im surprised the tax expert did not highlight the above - automatically its taxable.
Taxman should also get them on the amount lent to them by the parents - maybe gift duty.
If i was a rich man, i cant just give my kids 2 million and not expect any tax to pay.
Thinking about it i hope the tax dogs bite on this one - it would be free advertising about how it isnt
such a free lunch - if your a New Zealand resident that is.....Last edited by TheFlash; 12-02-2015, 10:01 AM.Comment
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May is an awfully big word, as in ....... you may be subject to special tax rules.......... it doesn't mean it's automatic at allOriginally posted by TheFlash View PostAre any of the contestants builders or in building related trades ?
They may wanna read this then.
Im surprised the tax expert did not highlight the above - automatically its taxable.
Gift duty has been abolished in NZ....it was a WOFTAM ....even the politicians could see that.Taxman should also get them on the amount lent to them by the parents - maybe gift duty.
why the hell not...it's my money if I want to give it to somebody why should there be tax to pay......a poor man can give $2,000 to somebody without paying tax why should the amount matter???If i was a rich man, i cant just give my kids 2 million and not expect any tax to pay.
They should pay the minimum tax they legally can and not a cent more......same as everybody.Thinking about it i hope the tax dogs bite on this one - it would be free advertising about how it isnt
such a free lunch - if your a New Zealand resident that is.....
Cheers
SpacemanComment
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Another with poor reading comprehension ....."may" doesn't mean "will"Originally posted by RHarris View Post
Television contestants may have to fork out part of profits to Inland Revenue
Tax rules
• Profit on sale of a house is taxable income if it was bought with the intention of selling
• Exemption: if it is the legal owners' residence .......seems a pretty simple 'out' to me
• Exemption lost if the owners have a pattern of buying and selling houses .....if it's the kids first house and they're the owners logic would say that there isn't much of a pattern of buying & selling....or is that just me???
Cheers
SpacemanLast edited by spaceman; 12-02-2015, 11:33 AM.Comment
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As you said, Im wrong about gift duty.
Are any of them builders by trade - that to me is what perhaps is being overlooked by the tax expert ?
The advantage the Ird have is usually its you that have to prove innocence - rather than them proving your guilty which is often harder to do so the word "may" is no good without enforcement.
(i always loved your posts on taxation spaceman
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My thing is the show seems to be promoted as "a quick paint and flick play book".
The whole reason these families cant afford to purchase a house in the first place is due to the very speculative activities others before them have partaking in - and perhaps avoid paying the same tax and for the same reasons.
I guess its another form of the broken window theory - are they the heroes or villains
i dunnoLast edited by TheFlash; 12-02-2015, 12:13 PM.Comment
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Article made it seem like these people don't own the houses they are working on.Comment
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^^ My overriding feeling on Tax is that I can spend the money better than the govt......so I want to give them as little as possible.....LEGALLY!!!!!!!!!!!
There are heaps of things you can do to reduce your tax burden.......if the contestants in the show did the right things at the right time they will be able to pay less tax than if they didn't.......what those specific things are will be different and two couples could do the same things and end up with quite different amounts of tax to pay.
I do have a bit of an issue with people saying things are "atuomatic" or "will" when the IRD themselves quite clearly state "MAY" .....learn to read people
Cheers
SpacemanComment
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I would guess not because what good is someone who knows what they are doing to reality TV?Originally posted by TheFlash View PostComment
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According to the below article, at least one is a builder.
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It isn't taxable, no idea what he was thinking that it could be. You can give money away to anybody it has nothing to do with tax? He MAY mean give it away pretax from an entity. That is entirely different.Comment
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...because your gift is a form of income to somebody and as such should be taxed.
The parents lending the children money - there should be tax collected off that as well - ie the fair market value which would perhaps be the standard mortgage rates of the deposit - the banks would in theory pay tax on that.
I pay tax on my term deposit whats the difference ?Comment
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We must be misunderstanding something.
From CAB site, giving money you have to your kids is not taxable in any way??
Gift & Estate duty
I want to give a large amount of money to my son as a wedding present. Will I have to pay gift duty?
Gift duty was abolished on 1 October 2011, so if you have gifted the money after this date then you will not have to pay gift duty.
However, if you gave him the money before 1 October 2011, and it totalled $12,000 or more within a twelve month period, you will at least need to file a gift duty statement with Inland Revenue. If you gave $27,000 or more within a twelve month period then you will have to pay gift duty as well. You can calculate how much duty you must pay by reading the IR 194 gift duty brochure .
Gift duty is especially important when dealing with trusts, as gifting is the main way that property is transferred to a trust. (To find out more about trusts, see our Trusts section.)
I am leaving my house to my children when I die. Will they have to pay estate duty?
Estate duty was abolished for deaths that occurred after 17 December, 1992.
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Obviously some point in the past gifts were consider taxable, at the moment they are not - however somewhere there will be weasel words that get you, Im not an accountant - and at the stroke of a pen it can be back. Even interest on loans was considered a gift and taxable at some point.
Some politician must be cashing up ............ and thought it would be handy to pause the rules for awhile.
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