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  1. #21
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    Quote Originally Posted by Harvey Specter View Post
    Definitely a Win for your Brother if he decides not to 'gift' it back.
    Haha yes indeed... there is that inherent risk involved there as well.... But I trust him!

  2. #22
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    Aug 2010
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    Bologna Country
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    In practical terms, after reading numerous FIF threads on here, I take this to mean I can buy 50K of e.g. Vanguard total market index ETF on the ASX and sit on it for eternity and as long as I never purchase any other share outside of the IRD approved list, I will never have to pay any FIF tax on the holding except tax on dividends (if any)?

  3. #23
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    Feb 2005
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    Auckland, , New Zealand.
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    Quote Originally Posted by audiav View Post
    In practical terms, after reading numerous FIF threads on here, I take this to mean I can buy 50K of e.g. Vanguard total market index ETF on the ASX and sit on it for eternity and as long as I never purchase any other share outside of the IRD approved list, I will never have to pay any FIF tax on the holding except tax on dividends (if any)?
    Re investment of distributions would be counted as adding to your $50,000. You would need to take the cash option.

  4. #24
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    Sep 2007
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    But if the value increases over $50000 in the following tax year, FIF is triggered

  5. #25
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    Quote Originally Posted by voltage View Post
    But if the value increases over $50000 in the following tax year, FIF is triggered

    Not so. It is cost price that is used.

    Reinvesting distributions would be a purchase thus adding to the original investment that may, will in time, take you above the $50,000.

  6. #26
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    Aug 2010
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    Bologna Country
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    Cost price was how I interpreted it from IRD website, but needed a second opinion

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