Mitigating the effects of a potential new capital gains tax

[Beagle]

http://www.sharechat.co.nz/article/7...ital-gainshtml

It looks like the goal posts could be moved in the foreseeable future.
Very good to see they are NOT recommending changing the imputation scheme as that would have been a huge blow to the market.
So...this begs the question of how to mitigate the effects of any new capital gains tax on shares ?
What springs to mind immediately is Percy's favorite of finding good quality companies that will pay ever increasing dividends and hold them indefinitely.
Well worth noting that the interim Tax working group report does not recommend taxing unrealized profits.
So buy high quality companies with a sound dividend yield that will grow earnings and dividends very nicely over time and never sell. OCA springs readily to mind.

[couta1]

http://www.sharechat.co.nz/article/7...ital-gainshtml

It looks like the goal posts could be moved in the foreseeable future.
Very good to see they are NOT recommending changing the imputation scheme as that would have been a huge blow to the market.
So...this begs the question of how to mitigate the effects of any new capital gains tax on shares ?
What springs to mind immediately is Percy's favorite of finding good quality companies that will pay ever increasing dividends and hold them indefinitely.
Well worth noting that the interim Tax working group report does not recommend taxing unrealized profits.
So buy high quality companies with a sound dividend yield that will grow earnings and dividends very nicely over time and never sell. OCA springs readily to mind.

Or sell every gain you have before it comes into effect.

[Beagle]

Or sell every gain you have before it comes into effect.

I'm getting out of HLG now before you destroy the price and Couterise me

[winner69]

Even the Percys of the world will be worse off ...even though he holds for increasing dividends he does sell things quite often (when things slow down) and it appears he would have to pay tax on any share price gains.

[percy]

Even the Percys of the world will be worse off ...even though he holds for increasing dividends he does sell things quite often (when things slow down) and it appears he would have to pay tax on any share price gains.

That's the way I see it too.
Hate to think what the tax bill would have been on the EBO I held for over 25 years.For a start I can not remember or have records for what I paid for them.
I don't see how my approach would change.Hang onto my winners and sell my losers.

[RTM]

That's the way I see it too.
Hate to think what the tax bill would have been on the EBO I held for over 25 years.For a start I can not remember or have records for what I paid for them.
I don't see how my approach would change.Hang onto my winners and sell my losers.

Although personally I don’t want it, it does seem fair that there should be a tax on gains we make. And I guess this should be offset against any losses as well.

What about if one buys a company for say $200k, works hard and builds it up and sells it for $400K two years later..would the tax on this gain be assessed as well ? And boats...and artwork and...?
Needs to be pretty comprehensive to be fair.

Good rhread.

Cheers, RTM

[Patient Panda]

Yes Beagle the strategy You outlined favoured by Percy and many others is the same one espoused by Warren Buffet . Will certainly encourage a longer term view for many.

overall I would not be upset about a CGT so long as it applies to everything equally similar to how gst operates. However I would be extremely annoyed if they do actually ring fence the family home. You could not get any worse policy than that.

[Beagle]

Yes Beagle the strategy You outlined favoured by Percy and many others is the same one espoused by Warren Buffet . Will certainly encourage a longer term view for many.

overall I would not be upset about a CGT so long as it applies to everything equally similar to how gst operates. However I would be extremely annoyed if they do actually ring fence the family home. You could not get any worse policy than that.

Yep, just finished backing up the truck and cleaned out the remaining shares of offer at $1.19 in OCA. Compelling fundamental's and long term growth story.

[minimoke]

Yep, just finished backing up the truck and cleaned out the remaining shares of offer at $1.19 in OCA. Compelling fundamental's and long term growth story.

Good onya for clearing that level. Next step $1.20

[Beagle]

Good onya for clearing that level. Next step $1.20

Chatted with my old mate Couta a littler earlier this afternoon and it turns out I was buying his shares at $1.19. He's officially been Beaglized
The claw marks are really going to hurt when this hits $1.25 shortly...
Might hold these OCA puppies till I die and transfer them to my family trust then any capital gains tax is my kids problem