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  1. #10701
    always learning ... BlackPeter's Avatar
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    Quote Originally Posted by percy View Post
    Selling buying back,is Ok for a person who pays tax on their trading,or has moved back to NZ from Aussie, and has organised their tax position,so as they do not have to pay tax for a couple of years.
    For a long term investor,who pays tax on their dividends,but not on their capital gain,as they have held for a long time,regular buying/selling leaves them wide open as being a trader.
    Not worth the risk with a large portfolio,which is being driven by companies such as HBL, who have the capacity,and who are paying increasing dividends.
    Maybe we need another site ie ************* rather than Sharetrader,as what suits a trader ,does not suit an investor..
    There is probably a better thread to discuss tax implications - so here just a couple of points in response:

    Capital gains in NZ are taxable if the shares have been bought with the intention of trading (i.e. you intended to create an income through buying and selling at a better price). If you buy to enjoy the dividends but sell at some stage into a downtrend to preserve your capital, than any capital gains made that way are according to my understanding not taxable.

    But even if you can't convince your friendly tax man by doing this too frequently (and I think this needs to be an individual discussion looking into the particular individuals "trading habits" to decide whether they are trading or investing), wouldn't it be better to make a profit and pay taxes on it than to make no profit and save paying the taxes?

    If you are not sure - what really is the risk? Say you make $10k by selling at the start of a downtrend and buying the same amount of shares cheaper back at the bottom. If IRD deems in this particular situation that your intention was to trade (vs capital conservation), the worst which could happen is that you give (worst case) 3k of these 10k to IRD. Leaves you still 7k better off compared to holding throughout the downtrend.

    I don't see a relationship to the size of the portfolio either. Even if you are considered a trader by IRD, than you only pay tax on realized gains, not on any paper gains your portfolio might enjoy (no matter how large it is). And the divvies you pay taxes on anyway) no matter whether deemed to be an investor or trader), though given that HBL divvies are fully imputed is this not a hard thing to do :
    Last edited by BlackPeter; 18-04-2018 at 10:54 AM.
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  2. #10702
    percy
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    Makes no sense at all to me to risk my tax position for $10K to $100k.
    Each to their own accountant's advice.
    Last edited by percy; 18-04-2018 at 11:33 AM.

  3. #10703
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    Quote Originally Posted by percy View Post
    Makes no sense at all to me to risk my tax position for $10K to $100k.
    Each to their own accountant's advice.
    I always take my accountants advice, I see him every day in the mirror.

  4. #10704
    percy
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    Quote Originally Posted by couta1 View Post
    I always take my accountants advice, I see him every day in the mirror.
    Lucky you.
    lol.

  5. #10705
    Speedy Az winner69's Avatar
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    A business loan approved in minutes ...but a month to produce Tax Certificates

    Other banks etc had them out in 5 or so days and online ....Heartland still use slow post ...a digital leader eh

    Got a letter today which essentially said there new computer system is a bit rooted ...but might get a Tax Certificate in a day or two.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  6. #10706
    percy
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    Quote Originally Posted by winner69 View Post
    A business loan approved in minutes ...but a month to produce Tax Certificates

    Other banks etc had them out in 5 or so days and online ....Heartland still use slow post ...a digital leader eh

    Got a letter today which essentially said there new computer system is a bit rooted ...but might get a Tax Certificate in a day or two.
    Maybe Craigs and Westpac are using the same system, as I am still to receive Tax Certificates from them .

  7. #10707
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    Quote Originally Posted by percy View Post
    Maybe Craigs and Westpac are using the same system, as I am still to receive Tax Certificates from them .
    Add ANZ and Link Services to that list. Useless.

  8. #10708
    Speedy Az winner69's Avatar
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    Quote Originally Posted by iceman View Post
    Add ANZ and Link Services to that list. Useless.
    For me ANZ were first. Downloadable early April (even taking into account Easter)
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  9. #10709
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    Quote Originally Posted by iceman View Post
    Add ANZ and Link Services to that list. Useless.
    I had mine emailed to me on Monday from ANZ securities so no problem for me 😊

  10. #10710
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    Quote Originally Posted by Ggcc View Post
    I had mine emailed to me on Monday from ANZ securities so no problem for me ��
    I was referring to ANZ Bank

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