Hi everyone
i’ve got a question for you does anyone know the answer to my delema
I have been buying properties in NZ under my australian family trust. i am an aussies and was living in oz at the time. I have now moved to NZ and want to sell a couple of properties, so i can buy some more.
Now my question – if i sell a property in NZ that is owned by an australian based family trust whose benificiaries are now NZ residents will i need to pay any capital gains tax. as nz residents don’t pay capital gains tax.
thanks
westan
New Zealand Tax payers don’t pay any capital gains taxI find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Well, 72 hits and no replies, I’d say your question was too hard. If you do find out the answer, can you let us all know?
Thanks Westan, and good luck.
PK
I probably should even try
But I thought that the property held here and sold here would be subject to capital gains tax, or income earnt here, they will expect you to pay some sort of tax however there may be something available where as a NZ resident, you might be exempt from having to pay this.
I only base this on a reverse: I owned nz telecom shares, the divs were subject to NZ tax even though I was an aussie and they were bought for my portfolio here. They worked it somehow where I got the rebate but round about way. They took out NZ income tax, or witholding tax, but as a non new zealand resident, there was a special supplementary amount.
Go figure…but maybe something similar.
hey Westan I am beginning to Like NZ more each day!cheers
Elves
” a blind man may see what a sighted man may not”
Hi Westan,
I’m not sure on this one, you should ask Steve, he’s an Accountant.There must be a way of transferring some, if not all of the capital gain and or profit to yourself as you are now a NZ resident for tax purposes. Look at charging a commission from your NZ structure to manage/sell the properties for the Australian trust. This “fee” would then be taxable in NZ but an expense that would reduce the taxable income in Aust.
The assumption I’m making here is that you will have enough tax losses from your NZ structure to offset the income produced as a result of this “fee”. I suppose it depends on the size of the capital gain doesn’t it?
This is why I use a Limited Liability Company in NZ, it’s so much easier to transfer the shares of the Company and therefor the ownership than to transfer the title – and the cost is negligible.
Regards
JeffHi Westan,
Jeff just made an interesting point. I’d call Steve direct and ask him what he did and whether he had to pay tax or not. I would believe Steve has been in exactly the same boat. He has NZ investments and Aussie investmenst just the other way around – I mean he is an Aussie resident.
Hope you find out soon and it goes well for you. I guess the fact that we can’t help you that much proves that we are not at the level of your expertise yet in investing.
kind regards,
George.“If You never never ask, you’ll never never know”
You could try Garth Melville at Company Solutions in NZ – supposed to be a whiz accountant re Aust-NZ IP’s.
skippygirl [biggrin]
Hey Skippy,
do you have his (Garth Melville at Company Solutions) details?
Thanks.Kind Regards,
George.“If You never never ask, you’ll never never know”
Hi Geo
garth melville
are at http://www.company-solutions.co.nz
Ph 64 9 489 9130
Personally i found them more keen on selling me an Lacq/trust than answering my questions of what was the advantages of setting one up for me ?? i knew what the advantage was for them – $2,500.
so i never used them.
and i know someone who has since changed the trust document after setting up one of there products.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
thanks for the details Westan
can you ckeck your email urgently please – thanks.
“If You never never ask, you’ll never never know”
Yeah I know some supposed gun accountant in melbourne who charges 800 per month to run all the complicated structures he loves his clients to set up (wonder why??)
NZ Bird Dogs. SOLD OUT! More deals coming…
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