PHOTO: 123RF IRD proposes change to stop ‘habitual’ house flippers avoiding tax by spreading liability around.
Inland Revenue is proposing a change to the law that would stop “habitual” house flippers from avoiding tax on their profits by changing the person who makes the purchase each time.
The move follows the decision by the Government not to pursue a Capital Gains Tax (CGT) in April, which it thought would help flatten the frothy housing market. The Government has since pursued several other policies that crack down on housing speculation.
In general, Kiwis don’t have to pay tax when selling the land under their “main home” or business premises – as long as they didn’t intend to re-sell it when the property was bought.
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