I'm trying to do online FX trading and really confuse with the tax. Is my gain from foreign currency trading counted as capital gain?
I have had conflicting information about this scenario.
I am an average Joe Bloggs on an average middle-class income. Quite frankly I'm tired mentally and physically of working long hours just to keep myself in a job (just above broke).
Due to change in circumstances I've decided to rent my home. The house has a mortage and I've heard mixed messages on whether the interest on that loan will be tax deductible when I rent out the property. What's your understanding?
I have also been shown 'the new way' of depreciating rental property - with items such as wiring, plumbing and partitions depreciated faster than the building itself - which gave me misgivings.
I wonder if you are aware that Inland Revenue will accept property valuations showing a chattels value as high as one third of the value of an investment property purchase, with the consequent depreciation of these "chattels" at the chattels depreciation rate of 18 per cent.
My question relates to capital gains tax. My understanding is that someone who buys shares (or any other asset) for long-term investment purposes with the aim to collect dividends (or rent etc) is not subject to paying capital gains tax in NZ.
I asked the IRD about purchasing shares and what expenses are deductible.