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A similar story in NZ. 0% tax on capital gains when selling a property. There is a so-called 'brightline test' which means that if you hold a property for less

by tmnvix 3y ago

A similar story in NZ. 0% tax on capital gains when selling a property. There is a so-called 'brightline test' which means that if you hold a property for less than two years or purchase a property with the intention of selling it for a profit you are expected to pay tax on those gains, but in practice this doesn't happen. Still waiting for the day that the tax department gets serious about questioning people's intent (as it is plain to everyone that yield is abysmal and capital gains is the real game - has been for decades).

CalRobert 3y ago
The dialog about this in Ireland is "you can't tax HOUSES that's your gran's HOME you MONSTER!" (gran lives in dun laoghaire, poor thing) but 4 people renting a flat commuting to Dublin from Athlone with a few euro in trading212 or whatever are robber barons who should be taxed to the hilt. Not to mention the health service is appallingly bad and getting anything done takes an eternity. And I failed to mention, it's not just the lack of capital gains tax, it's the lack of meaningful property tax. My own prop taxes were €103 a year (for a dump in Offaly admittedly) but they're close to zero for the most part. So local renters work hard and pay mountains of tax to provide infrastructure (though most of it is crap stroads admittedly) making your own house worth more, so making you richer, and that value is never captured at any point or allowed to help the people who made it possible.
robocat 3y ago
Nitpick: Your information on the brightline test seems incorrect. AFAIK: Intention doesn't matter for property - instead the brightline rule matters. Intent matters for NZ shares. Intent matters for foreign shares costing <$50k in total. Intent also doesn't matter for crypto. The bright-line capital gains tax rules look at the purchase and sale dates and there's a bunch of extra conditions so it can't easily be avoided. The bright-line property rule looks at whether the property was acquired: • on or after 27 March 2021 and sold within 5 years for qualifying new builds or within 10 years for all other properties • between 29 March 2018 and 26 March 2021 and sold within 5 years Changes are coming For properties sold on or after 1 July 2024, the bright-line property rule will only apply if the property is sold within 2 years of acquiring it. https://www.ird.govt.nz/property/buying-and-selling/when-you-need-to-pay/the-brightline-property-rule https://www.ird.govt.nz/property/buying-and-selling/when-you...

by tmnvix 3y ago

CalRobert 3y ago

The dialog about this in Ireland is "you can't tax HOUSES that's your gran's HOME you MONSTER!" (gran lives in dun laoghaire, poor thing) but 4 people renting a flat commuting to Dublin from Athlone with a few euro in trading212 or whatever are robber barons who should be taxed to the hilt. Not to mention the health service is appallingly bad and getting anything done takes an eternity. And I failed to mention, it's not just the lack of capital gains tax, it's the lack of meaningful property tax. My own prop taxes were €103 a year (for a dump in Offaly admittedly) but they're close to zero for the most part. So local renters work hard and pay mountains of tax to provide infrastructure (though most of it is crap stroads admittedly) making your own house worth more, so making you richer, and that value is never captured at any point or allowed to help the people who made it possible.

robocat 3y ago

Nitpick: Your information on the brightline test seems incorrect. AFAIK: Intention doesn't matter for property - instead the brightline rule matters. Intent matters for NZ shares. Intent matters for foreign shares costing <$50k in total. Intent also doesn't matter for crypto. The bright-line capital gains tax rules look at the purchase and sale dates and there's a bunch of extra conditions so it can't easily be avoided. The bright-line property rule looks at whether the property was acquired: • on or after 27 March 2021 and sold within 5 years for qualifying new builds or within 10 years for all other properties • between 29 March 2018 and 26 March 2021 and sold within 5 years Changes are coming For properties sold on or after 1 July 2024, the bright-line property rule will only apply if the property is sold within 2 years of acquiring it. https://www.ird.govt.nz/property/buying-and-selling/when-you-need-to-pay/the-brightline-property-rule https://www.ird.govt.nz/property/buying-and-selling/when-you...