Originally Posted by
blackcap
Im not sure that is true. If I buy a share (part of a business) in a for $5 (capital), and this business does well and I sell it down the track for $10, I have a tax free gain.
If I buy a house for $5 and down the track I sell it for $10 I also have a tax free gain.
If my business pays me a dividend of $1 I pay tax on that $1. IF my house provides me rent of $1 I pay tax on that rent.
If I borrow to buy my share in the business, the interest is tax deductible.
If I borrow to buy my house, the interest is also tax deductible.
I fail to see the difference?