Quite correct. UNLESS they are deemed to be a trader within the IRD definition. In which case they are liable for income tax on profit on sale. Which is what fungus pudding said.
Printable View
They should, but will the government realise this, given their much publicised and uninformed views on CGT for 'speculators'.
If the expert tax group goes for a CGT (bet they will) then the legislation is to be passed this term for implementation next term (if they remain the government). The government might find it a bit trickier than a few bumper stickers.
I wonder how Australia treat traders vis a vis investors. Anyone know?
If we analyze assets everybody cannot get same capital gain or return. It all depends on the experience and knowledge on the industry and different types of assets. Both investors and traders not only make profit but also make losses. History should repeat for all types of assets in a different manner. What about 1987 crash? What about financial companies went into receiver ships mainly due to property investment in Auckland and Queens-town? How did some mum and dud lost money by investment in apartments in Auckland in the past?
I found very interesting link.
http://www.stuff.co.nz/business/mone...investors-make