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> Holding growth shares in US tech stocks will result in annual wealth taxes, even if you hold and never sell. Can you explain this more?
by mrep 4y ago
> Holding growth shares in US tech stocks will result in annual wealth taxes, even if you hold and never sell.
Can you explain this more?
- sgt 4y agoI wonder about this as well. Let's say Amazon did really well for 5 years and you paid significant wealth tax from these shares. Then Amazon plummets and you lose 50% and then you sell shares. Would the NZ government reimburse a part of the wealth taxes you already paid?
- yardstick 4y agoIt’s NZ’s CFC/FIF rules. See https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-income/foreign-investment-funds-fifs https://www.ird.govt.nz/income-tax/income-tax-for-businesses... https://taxsummaries.pwc.com/new-zealand/individual/income-determination https://taxsummaries.pwc.com/new-zealand/individual/income-d... No I don’t believe you can get tax credits for paper loses. But you definitely do have to pay for paper gains. Most financial firms in NZ wrap US/growth stocks in a special type of investment called a PIE, which essentially they handle the tax issues for you (Ie your net % gain includes after this wealth tax is taken into account).