NZ 1st homebuyers are ScReWeD...

[TeslaGod]

I'm still waiting for you to answer my questions re tax avoidance and so are several other posters who have commented on your inability to back up your claims.

I'm not willing to email you several years of financial statements.

I have posted several times how I take living.

It's not rocket science.

[fungus pudding]

I'm not willing to email you several years of financial statements.

I have posted several times how I take living.

It's not rocket science.

I do not want to see financial statements.
I simply want to know how you avoid paying tax on what you claim is a large income.
You cannot keep declaring a loss and living tax-free off a credit account, unless you are losing money - in which case your credit will dry up.
Furthermore - you run the risk of having the IRD treat your credit drawings as income. In fact it's a dead certainty if you make frequent or regular drawings.

[dobby41]

I do not want to see financial statements.
I simply want to know how you avoid paying tax on what you claim is a large income.
You cannot keep declaring a loss and living tax-free off a credit account, unless you are losing money - in which case your credit will dry up.
Furthermore - you run the risk of having the IRD treat your credit drawings as income. In fact it's a dead certainty if you make frequent or regular drawings.

FP - you are better off to just ignore him (her) and take it all with a grain of salt - see it for the self aggrandising bulldust that it is.
I read his (her) comments for amusement only.

You can live off capital gains and shares are easier than pysical assets.
The CG on shares are non-taxable and you can sell a few shares each year to access them.
In the meantime, you have a little taxable (maybe imputed) dividends to declare (so pay a little tax), live the high life and have a bit of CG left to cover inflation.
Property is harder. Sure you can get a credit facility but you have to pay interest.

[TeslaGod]

FP - you are better off to just ignore him (her) and take it all with a grain of salt - see it for the self aggrandising bulldust that it is.
I read his (her) comments for amusement only.

You can live off capital gains and shares are easier than pysical assets.
The CG on shares are non-taxable and you can sell a few shares each year to access them.
In the meantime, you have a little taxable (maybe imputed) dividends to declare (so pay a little tax), live the high life and have a bit of CG left to cover inflation.
Property is harder. Sure you can get a credit facility but you have to pay interest.

Thanks dobby41

I have both , credit facilities on all real estate which I don't use, and liquidity in shares I also use Margin.

Increasing interest rates don't affect me, sticking to the topic they only affect/effect 1st home buyers.

[fungus pudding]

FP - you are better off to just ignore him (her) and take it all with a grain of salt - see it for the self aggrandising bulldust that it is.
I read his (her) comments for amusement only.

You can live off capital gains and shares are easier than pysical assets.
The CG on shares are non-taxable and you can sell a few shares each year to access them.
In the meantime, you have a little taxable (maybe imputed) dividends to declare (so pay a little tax), live the high life and have a bit of CG left to cover inflation.
Property is harder. Sure you can get a credit facility but you have to pay interest.

But it's not that easy. If you are not showing an income, sufficient to provide basic living, from your activities, and living largely from drawings made through the gain on investments then the taxman will show a lot of interest - and as far as living the high life - forget it. He will find everything about your life style that is possible to discover. He'll go through all your possesions, the clothes in your wardrobe, etc, and value them. He'll know your restaurant visits, your favourite pub - and don't try telling him you stayed with relatives or friends when you were on holiday. it was his sceptical nature that got him into the job. Yes, you can turn a few shares into cash periodically, but be careful that you are doing it 'for the right reason' (which should not be to buy a new car).
Of course you can mortgage a property, but that loan is not tax deductible, and every such move reduces your income.
I do realise that TeslaGob is just a blowhard plonker. Hopefully though others will realise that his (definitely a he) ramblings are simply for his self-gratification. I'm quite sure he'll be well aware of the other ways.

[TeslaGod]

But it's not that easy. If you are not showing an income, sufficient to provide basic living, from your activities, and living largely from drawings made through the gain on investments then the taxman will show a lot of interest - and as far as living the high life - forget it. He will find everything about your life style that is possible to discover. He'll go through all your possesions, the clothes in your wardrobe, etc, and value them. He'll know your restaurant visits, your favourite pub - and don't try telling him you stayed with relatives or friends when you were on holiday. it was his sceptical nature that got him into the job. Yes, you can turn a few shares into cash periodically, but be careful that you are doing it 'for the right reason' (which should not be to buy a new car).
Of course you can mortgage a property, but that loan is not tax deductible, and every such move reduces your income.
I do realise that TeslaGob is just a blowhard plonker. Hopefully though others will realise that his (definitely a he) ramblings are simply for his self-gratification. I'm quite sure he'll be well aware of the other ways.

I'm here to inform, educate and post updates on TSLA stock.

Judge me as you wish.

https://youtu.be/vCpNPaSM2UM

[dobby41]

But it's not that easy. If you are not showing an income, sufficient to provide basic living, from your activities, and living largely from drawings made through the gain on investments then the taxman will show a lot of interest - and as far as living the high life - forget it. He will find everything about your life style that is possible to discover. He'll go through all your possesions, the clothes in your wardrobe, etc, and value them. He'll know your restaurant visits, your favourite pub - and don't try telling him you stayed with relatives or friends when you were on holiday. it was his sceptical nature that got him into the job. Yes, you can turn a few shares into cash periodically, but be careful that you are doing it 'for the right reason' (which should not be to buy a new car).

Will IRD take notice though?
'Intent' is a major factor in the tax law.
If you intended to hold for the long term (and have held for years) could they say that the CG is taxable just because it now drives the majority of your 'income'?
I am told by several financial planners that it is a common tactic and is seem as being acceptable.

It is really a problem with our tax system - we tax 'income' more than we tax wealth.
I think we will have to start taxing wealth because more and more people will use this sort of construct to provide them with a 'living'.

[dobby41]

I'm here to inform, educate and post updates on TSLA stock.

Judge me as you wish.

https://youtu.be/vCpNPaSM2UM

You are in the wrong thread then!

[artemis]

Will IRD take notice though?
'Intent' is a major factor in the tax law.
If you intended to hold for the long term (and have held for years) could they say that the CG is taxable just because it now drives the majority of your 'income'?
I am told by several financial planners that it is a common tactic and is seem as being acceptable.

It is really a problem with our tax system - we tax 'income' more than we tax wealth.
I think we will have to start taxing wealth because more and more people will use this sort of construct to provide them with a 'living'.

Common enough for advisers to propose withdrawing capital at say 4% a year in retirement. A clear intention there and seems most unlikely that this alone would see IRD count the person as a trader. Or as a non-retiree depending on some definition of age, that would in any case be a HR Act breach.

Taxing wealth as income - it has been proposed - would encourage different behaviour.

I have older rellies in Australia where there is means testing for pensions - income and assets. They have very good advisers.

[fungus pudding]

Will IRD take notice though?
'Intent' is a major factor in the tax law.
If you intended to hold for the long term (and have held for years) could they say that the CG is taxable just because it now drives the majority of your 'income'?
I am told by several financial planners that it is a common tactic and is seem as being acceptable.

It is really a problem with our tax system - we tax 'income' more than we tax wealth.
I think we will have to start taxing wealth because more and more people will use this sort of construct to provide them with a 'living'.

And there are plenty who have found that the IRD consider their conduct to be taxable income. As I said - make a habit of it, or try living off it, and you'll be likely to get a visit from a very nice man for a wee chat. It might even be a woman who turns up. They're equal opportunity employers now. Isn't that nice.