Property Traders pay Tax on the gains made on their property deals. Yes you heard right. Contrary to what many politicians are communicating, Property investors who are regularly buying and selling property for a profit i.e. trading have the same tax obligations as other businesses – that is they pay tax on the gains made. The good news is – paying the ‘gains’ tax hasn’t dampened their desire to continue trading. In fact property trading is growing in New Zealand.
It was highly interesting to see a discussion that followed on Facebook when a property trading deal was shared online.
The property trading deal in question caught our attention and the attention of many Facebook followers. A PropertyTutors’ mentoring client happily shared her recent deal and PropertyTutors promoted it on their Facebook page. Needless to say it attracted a lot of comments including the tax question:
“Did Johanne pay tax on this $80K?”
The response from PropertyTutors……
Property Trading is growing in interest and participation around New Zealand. This is evident by the growth of ProperyTutors Limited. Sean Wood and Steve Goodey mentor investors all year round. Twice a year the property deals (like Johanne’s deal) are publicised.
Like it or not property trading is legal, it is a business that is taxed as much if not more than other businesses yet the growth is this investing strategy continues and many of us are left wondering why we’re not doing it.
PropertyTutors have a Webinar on – 17th September – so you can find out just how these investors make a profit from their property deals.