Mitigating the effects of a potential new capital gains tax

[minimoke]

Or is this trying to differentiate between a home owned by the occupier and a home owned by a trust?

I think its more aimed at the "doer Upper". Tricky area as it avoids tax on labour put into the doing up as well as the gain made on the sale.

Family trusts will be a whole other kettle of fish. You have your relatively straight forward home that the trust beneficiaries live in. But then you also have income producing farms held in trust. Trusts will be a complication

Edit - when I say avoid I don't mean "avoid". A better word will come to me.

[Ggcc]

I will be surprised if labour are in the next government. Of course Simon Bridges needs to go if that were to happen and then all this talk about CGT will be wiped out. I do know the government needs extra money as there is not enough to pay for all their promises. Maybe create more indirect taxes (user pays scenario)

[777]

And part of my mitigation strategy would be to trade off market to to remove a potential transaction radar (as well as broker fees)

Transaction has still taken place and recorded at the share registry with value of transaction also recorded.

[minimoke]

Transaction has still taken place and recorded at the share registry with value of transaction also recorded.

If I was Inland Revenue I'd firstly target accounts help by Share Brokers - like for example my ANZ Securities Account. That would given me a quick snapshot of buying selling activity.

Its a bit harder to go to the share registries. Given IRD cant track bright line house sales there is no chance at all they could delve efficiently into a share registry. At best they might hunt a CSN on Link or Computershare. But given they cant do a bank account then I dont think this would be an option.

[777]

"Can't do a bank account".

Are you sure about that?

A friend of mine was audited some years ago (random they said) and they already had transactions in his account that they were interested in.

[minimoke]

"Can't do a bank account".

Are you sure about that?

A friend of mine was audited some years ago (random they said) and they already had transactions in his account that they were interested in.

Seems they use data from Land Information - http://www.scoop.co.nz/stories/BU180...chard-owen.htm

[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.

[bull....]

they dont even need a capital gains tax they could just clarify the law and say if you buy and sell shares this no of times in a year your a trader and now you have to pay tax. simple

[777]

they dont even need a capital gains tax they could just clarify the law and say if you buy and sell shares this no of times in a year your a trader and now you have to pay tax. simple

Would that apply to wine, cars , stamps, art works?

One class of an investment can't be isolated.

[traineeinvestor]

Would that apply to wine, cars , stamps, art works?

One class of an investment can't be isolated.

But they already have with the "bright line test" for property sales.