Impertinent questions about Labour’s CGT tax grab

It’s also completely unworkable.  ACT’s Jamie Whyte explains

Exempting the family home from Capital Gains taxes is harder than it sounds.  What if you charge one of the children board?  What if it is one of the children’s friends?  A boarder?  Many South Auckland families share a house.  When does it stop being a family house?  If you take a job overseas or elsewhere and rent the home for a while, is it still a family home? What about the Granny flat?  What if it is not granny?

Labour’s proposal is not fair.  The million dollar Dotcom mansions will be capital tax free and the Otara ex-state house will be taxed because the owner needed extra income to pay the mortgage.

As with many Labour policies, it’s just aimed at the rich pricks, but hasn’t actually been thought through.   And with David Cunliffe hiding all his wealth in trusts, he’s got no idea how it will affect real people.

and this, via the Tipline  

Is there an inflation allowance if so will it be based on CPI, underlying inflation or something else ?

Will there be an annual allowance figure as per other regimes ?

Will you be instructing IRD to advise all property industry businesses that their tax rate will be reduced to 15% from 28% ?

If I buy a clapped out Indian Motorbike and spend 3 years lovingly restoring it will I have to pay a CGT when I sell it.

When my folks pass away and leave me their house (I have spent the last 5 years helping them stay independent and away from subsidised rest homes) is it subject to a CGT, a de facto inheritance tax ?

I work from home as a tradie and 20% of my home is taken up with my tools etc. do I have to pay CGT on that 20% ?

I bought this great painting at a garage sale a few years ago and just sold it on Trade Me do I now have to file an annual tax return declaring the profit even though it’s only $500.00 ?

I lost a few bucks from buying a rubbish overpriced painting on Trade Me can I claim on the $500.00 loss I made on it ?

Do I have to get a valuation done on every asset I own and submit it to the IRD ?

If my law firm doubles in value because I now have the inside running on all government advice do I have to pay tax on my windfall gain.

If I have to sell my assets at a loss to settle my matrimonial issues can I claim a deduction or do you ignore that because it was a forced sale at a discounted rate to avoid bad publicity from my very upset wife blurting all over the women’s weekly about my filandering ?

No doubt there are other taxing questions to aimed at Usain Bolt



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