The problem with IRD rules around taxing shares are that they are clear as mud. It is obvious that the INTENTION to buy shares is always to make a profit (dividends or capital gains). What is required is for IRD to clearly define the difference between how they qualify if the indivifual is trading or investing.
Great Video, it feels a lot less daunting after watching this :D If we dont go down the accountant route, I wonder if you could show an example for the laymen here (myself included) how this information would be translated into the NZ tax return, educational purposes only ofcourse haha
Thank you josh! This was an informative video I'm just getting into investing. I think i might go with either a CA (certified acountant) to do my tax or that sharesight software. I don't think it's entirely fair about how the goverment taxes us, I mean yes we do live in their country and they provide us shelter and stuff but in turn we also work for them, so we break our backs and do stuff that we don't want to do and put ourselves through pain for them so in my eyes they just keep taking away from us.
Informative video Josh. How is the tax rate(percentage) for stock trading? Due date? Can you please explain it a little bit more? Maybe a video on tax for NZ Stock trading will be much appreciated. Thanks.
hey mate, thanks for your video - dumb question, do I pay tax on the overall profit I make during a year or on each purchase individually ? Lets say I own shares of 3 companies, hold them for a few month and then sell 2 with a loss, one with a win and come out almost flat - will I pay almost no tax or the full amount of tax on the shares I sold with a profit? Cheers !
I'm unclear on the details. Let's use the FDR method for a FIF (foreign income fund) which is over 50K ND of net worth as an example. If on April 1st, 5% of a portfolio's market value is 5000 ND, is that the amount we pay in taxes or is the 5000 ND considered taxable income? Using a 33% tax rate, the final payment would be 1650 ND.
Awesome overview (good to confirm my understanding from a non-accountant perspective. General question, I like to learn to do my taxes myself, how does that work when it comes to consulting with an accountant? Do I show him/her my calculation and ask them to check my numbers?
Hi Joshua, General Capital stock price is going down since July 2020. Could you please make a analysis video for it if there is a future potential in that stock
i feel sorry for the kiwis , i lived in NZ (auckland ) for 23 years and the level of people actually pointing you in the right direction of investing is a bit pathetic , and there is really hardly anything worth investing in with NZ companies the financial education taught is abysmal in NZ , australias not that far behind , however crypto is probably your best bet over shares in NZ cryptos a worldwide scenario and is more dynamic, best thing you can do if you want money is leave NZ , people and country are great but the place is garbage when it comes to money
regarding the 50k question, if 2019 i threw 50k for investing in the US market then 2020, i threw another 50k, now 2021, i threw another 50k what would that work out to be in terms of rule?
Great video Mr Wang! May I ask if I were holding greater than 50k NZD in the US stock market in a few companies and I decide to hold these investments for years and my portfolio appreciated over the years and I haven't sold any shares will I be taxed for the financial year (or does this only apply if I sell my shares?) The moment I sell those shares which exceed 50k NZD in the US stock market, I would need to pay capital gains tax based on my income in NZ i.e. 33%? Would love to hear your response, thank you!
On a cost basis. Does this mean if i spent 45k on usa shares and they go up to 55k it does not count as 50k+? Good video. This topic is something I've always been confused by so very useful.
@@JoshuaWang Great video Josh. Just a follow up on this. What happens on the following year when a portfolio increase because of gains specially for traders.
@@JoshuaWang following on from the question above. if you sold at the 55k and then repurchased the shares would this count as being over the 50k threshold or does your initial 45k still count?
@BlueOceanWaves I'm actually in the opposite position right now. I've purchased 65k worth of shares which have now dropped in value to under 30k so I'm wondering weather I should sell and repurchase to get my cost under 50k FIF threshold. Not sure weather I can claim any losses or weather I will have to actually pay tax on the initial 65k
This trader vs investor interpretation is really silly What kind of investor doesn't buy shares to make a profit, they aren't buying to lose money? Also, most shares dont offer a substantial dividend or they do share buybacks, does this then mean you're a trader because the capital gain was the main profit even if you held for 6 months +?? They really need to fix these definitions, they can be arbitrarily enforced and brings a grey area into a tax code which should be very simple
