May 15 Budget – Property Traders Under Fire

housesFinance Minister Bill English confirmed more resources may be made available to the IRD to target Property Speculators. If there is an announcement it will more than likely be made in the May 15 Budget.

While some commentators are calling for a more far reaching Capital Gain Tax on property investors, the Government rejects the need for it.

NZPIF executive Andrew King says he welcomes the move to provide more resources to the IRD to target Property Traders and Speculators. In a recent NZHerald news item Andrew said the focus on traders not long term investors was appropriate and he hoped the outcome would be that we’re all more knowledgable. There is a lack of understanding of what a property trader is versus a long term property investor.

“Mr King said the public would have more confidence in a well-funded tax scheme which targeted traders instead of a broader capital gains tax, which would lead to increased costs for businesses and higher rents.”

Source

PropertyTutors mentor property investors in the property trading strategy. It is commonly known and accepted that Capital Gains Tax (CGT) applies when a property is bought with the intention of on selling it for a profit. CGT not considered a deterrent. PropertyTutors mentoring business is in high demand and their one day The Masters events held in May and October are so well attended you’re lucky if you can get standing room only if you leave your booking to the last minute.

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