Annoying taxes lurk in house deals - Mary Holm
Sunday 18 April 2004
Q. Despite being a very experienced professional in the field of land development, I share your caution about the booming housing market in recent months.
I consider that the need for houses has been soundly based, but the steep rise in prices has been fuelled in part by speculative investors as a reaction to the previous sharemarket downturn, and who know little about being la
By The Landlordndlords.
No rocket science in that, but where both central and local governments are looking for taxation sources that are relatively voter friendly, people should be aware of probable increasing interest in property investment by the IRD.
The article in the property investment section of the Herald of March 20-21 is worth reinforcing to your readers.
A. Indeed it is. The article was written by Simpson Grierson partner Stuart Hutchinson and senior associate Paul Windeatt, and I've since clarified a few points with Windeatt.
They answered a letter from a reader, who said the IRD had warned investors, last October, that if they bought real estate to sell for a quick profit the gain would be taxable.
"What if I buy one or more properties for long-term rental purposes and occasionally buy a property for quick sale?" asked the reader. "Will I be taxable on any (capital) gain on the eventual resale of any of the long-term rental properties?"
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