Capital Gains Tax

[minimoke]

Recent article on property investment, their example assumed the property was also paid off over 25 years. Even on conservative return settings, it's way better than a standard fund, because of leverage and tax being defrayed until the end.

https://www.nzherald.co.nz/business/...y+8+March+2019

Seems to be a few things missing. Like the GST paid on 1% of property value each year on repairs and maintenance.

And at 3% capital gain, 2% is simply due to inflation. Leaving just 1% true capital gain.

And this is where it gets complex and where Robertson cant figure things out. Say there is a $99 capital gain. $66 is due to inflation and has nothing to do with the property owner. $33 is the gain the property owner makes on taking the risk in owning property.

Now, what labour wants to do is tax the gain at the nominal tax rate. So the $99 is going to be taxed at 33%. Meaning $33 comes off the $99 gain.

So essentially the government wants to tax 100% of any gain the property owner makes on taking a risk.

Thats what happens when you vote for a "fair" government!