NZ 1st homebuyers are ScReWeD...

[fungus pudding]

Tell that to my accountant.

I will. What's his name and email address?


I should add - i enquired from my own accountant some years back about an LTC structure, and while I've forgotten the pros and cons, which weren't all that simple, I couldn't see any advantage, or if any there was any there was a disadvantage outweighing it. But it's all a bit hazy now. Tell your accountant if he can structure my affairs to avoid the new marginal rate then he almost certainly has a new client. 33% - was as much as I could live with, having already been though Muldoon's 66% tax nonsense of a few years back (1982).

[artemis]

Working for an income is sooo 1998

LOL. Since this is a share oriented site I'm sure most here know it is easy enough for a non-trader to bypass taxed income in favour of tax free capital gains. And in recent years same with property / lines of credit. No need to work. Clearly you are well aware TeslaGod!

I do sometimes wonder why some are so keen on divvies, imputed or not. Interested to hear views on that.

[fungus pudding]

LOL. Since this is a share oriented site I'm sure most here know it is easy enough for a non-trader to bypass taxed income in favour of tax free capital gains.

But it isn't that simple if the taxman decides he doesn't like your modus operandi, and he most definitely won't like it if it passes under his nose, as it inevitably will one day according to the law of averages. He draws names out of a barrell - a much smaller one than the lotto man uses with far fewer marbles, and applies a unique checking method know as 'the taxman sniff test'.

[artemis]

But it isn't that simple if the taxman decides he doesn't like your modus operandi, and he most definitely won't like it if it passes under his nose, as it inevitably will one day according to the law of averages. He draws names out of a barrell - a much smaller one than the lotto man uses with far fewer marbles, and applies a unique checking method know as 'the taxman sniff test'.

What is wrong with living off capital, if not a trader in the IRD definition? Very standard financial advice.

[dobby41]

What is wrong with living off capital, if not a trader in the IRD definition? Very standard financial advice.

Ultimately there is some dribbly dividend income to pay tax on.
Of course, this isn't good for the country but GST helps to take care of some of that.

[fungus pudding]

What is wrong with living off capital, if not a trader in the IRD definition? Very standard financial advice.

It might depend how the capital was obtained. Why was original capital invested for little or no return? Don't bother answering. The taxman will do that for you.

[Aaron]

I think what TeslaGod is suggesting is that he pays interest to the banks rather than tax to the govt. Meaning he is highly leveraged and relies on central bank intervention to succeed by pushing up asset prices and inflating away debt. This is funny from someone who sees govt and taxes as evil.
It has been working for over three decades now so no reason to think it will stop.

[TeslaGod]

I think what TeslaGod is suggesting is that he pays interest to the banks rather than tax to the govt. Meaning he is highly leveraged and relies on central bank intervention to succeed by pushing up asset prices and inflating away debt. This is funny from someone who sees govt and taxes as evil.
It has been working for over three decades now so no reason to think it will stop.

You are correct apart from that I am highly leveraged which I am not.

[Aaron]

You are correct apart from that I am highly leveraged which I am not.

Then you must be buying property at ridiculously low yields with interest rates so low.

[fungus pudding]

You are correct apart from that I am highly leveraged which I am not.

So how do you survive week to week, meeting living expenses and avoid tax? Sure, you can borrow against assets, creating a non tax-effective loan, but it opens up the possiblity of some fairly hefty dialogue with the taxman.