NZ 1st homebuyers are ScReWeD...

[dobby41]

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.

I do get your point but consider this
You amass, over 10 years say, $2mil in capital.
At 60 you decide to retire and take out $100k/yr for 20 years.
Would that be taxable and why?

If, while taking out that money, growth returned more than the 5%/annum that you are taking out would that make a difference to the scenario?

[TeslaGod]

What steps are you taking with the 39% tax rate about to kick in? Any suggestions?

I answered this question honestly and in return was insulted by several members on this thread.

I think some of you need to take a look at yourself and sort out your tall poppy syndrome.

[artemis]

I answered this question honestly and in return was insulted by several members on this thread.

I think some of you need to take a look at yourself and sort out your tall poppy syndrome.

Plenty of us are open to views we don't hold (yet). Keep posting.

[Bjauck]

I do get your point but consider this
You amass, over 10 years say, $2mil in capital.
At 60 you decide to retire and take out $100k/yr for 20 years.
Would that be taxable and why?

If, while taking out that money, growth returned more than the 5%/annum that you are taking out would that make a difference to the scenario?

If that $2m had been saved in a Kiwisaver, withdrawals past the national retirement age would be tax free, I think. However maybe PIE savings are treated differently.

Some (admittedly probably not many in NZ) may build up assets in businesses and shares and not in owner occupied housing. So when they retire they need to sell some assets each year to go towards paying for rent or rest home fees that their salaries may previously have paid for?

So would those capital withdrawals, as well as actual dividends received, be regarded as income whereas the taxable income foregone by others by investing in owner occupied housing (with its untaxed "dividend" benefit to the equity owner-occupier) would not?

[dobby41]

Some (admittedly probably not many in NZ) may build up assets in businesses and shares and not in owner occupied housing. So when they retire they need to sell some assets each year to go towards paying for rent or rest home fees that their salaries may previously have paid for?

So would those capital withdrawals, as well as actual dividends received, be regarded as income whereas the taxable income foregone by others in investing in owner occupied housing (with its untaxed dividend benefit to the owner-occupier) would not?

Not many? No idea really.
Are you asking me re tax applicability of capital withdrawals? I don't see that they would be (which is what I said).
I'm interested in FPs reasoning though. He may have some insight not considered.

[fungus pudding]

I do get your point but consider this
You amass, over 10 years say, $2mil in capital.
At 60 you decide to retire and take out $100k/yr for 20 years.
Would that be taxable and why?

If, while taking out that money, growth returned more than the 5%/annum that you are taking out would that make a difference to the scenario?

Take your pick from yes, no, it can be, or it depends. That's what my enquiries have revealed, but I've made a point of not asking in too formal a manner. I think intention is probably somewhere in there.
Any opinions on this forum - welcome.

[Aaron]

I answered this question honestly and in return was insulted by several members on this thread.

I think some of you need to take a look at yourself and sort out your tall poppy syndrome.

Apologies for the insult.

You are a bit more thin skinned than I had assumed.

I will try and be more respectful in the future.

[TeslaGod]

You are a bit more thin skinned than I had assumed.

Not really..

It's protected by an 8 figure networth.

[fungus pudding]

Not really..

It's protected by an 8 figure networth.

So what's all the crowing about? This forum is for investors. I'm sure there are a good few members who can make that claim.

[TeslaGod]

So what's all the crowing about? This forum is for investors. I'm sure there are a good few members who can make that claim.

That depends

On the first 2 digits.