Investing outside NZ? Here are some tax rules (FIF)

[@pfnz]

This is actually a very valuable piece of content, in all my years of researching this topic I have not come across such a factually accurate, comprehensive, paletable explination of this very complicated topic. As most things with tax, if you're unsure probably get in touch with an accountant, it will be worth every penny.

[@whitefearlytales]

Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments

[@make6766]

They should look to review that 50k figure, given massive inflation over the years.

[@cheramoia1990]

They get particularly forgetful & caught up in the admin with that kinda thing

[@GiveItAShot_SlingshotsNFishing]

Yeah, crazy hasn’t increased in years.

[@np4988]

I would love sharesies to put in enhancement in the app so that in portfolio "amount put in" there is a breakdown of investment in overseas fund/stocks.

[@edawg654]

Agreed

[@patriotlegionRS]

request this feature in the drop down menu within the app!

[@np4988]

@@patriotlegionRS I have put in a request for it, thanks for the suggestion!

[@glennhowlett2082]

Could you please explain why we cant call on losses?

[@GiveItAShot_SlingshotsNFishing]

Good point at the end about the NZ Smartshare funds, classed as NZ even if they then invest overseas in S&P 500, etc.

[@moorestylz]

These FIF rules seem unnecessarily complex. The government should reform the tax rules so that the average citizen can do their own tax return without needing an accountant. It doesnt need to be this complex! The only people it benefits are bureaucrats and accountants.

[@gf6378]

In 1yr if I invest $10k > Sell all > invest $10k > sell all...etc (6 times)..Does that count as $60k invested & require FIF reporting eventhough only $10k was ever invested at one time?..Thx

[@GiveItAShot_SlingshotsNFishing]

@@gf6378 yes, in the FIF rules I think they should really say it the accumulative total of buys. Would be a bit more understandable IMO.

[@GiveItAShot_SlingshotsNFishing]

I think there should be some exceptions. e.g. need to ditch a company due to delisting or some major unexpected negative announcement.

[@DHRMproductions]

So is the $50k the cost of attribution (I.e. you spend 50k to get shares) or is it the value of shares you own? So you spend 25k on US shares in year 1, but in year 2 they are worth $75k. This video makes it seem like the former. So if you spend 50k on shares (I.e. 50k purchase price in a year) then you get taxed on that. But if you got lucky and spent $5k on shares, only for them to go go $500k in 10 years, then you are exempt..?

[@GiveItAShot_SlingshotsNFishing]

Yep that’s right, accumulative total cost in a tax year. And if under 50K FIF doesn’t apply even if keep for years and value goes up. They should increase the 50K as it’s been that amount for years.

[@lunavela6708]

I'm still confused by this, I'll watch it again later

[@luke4916]

Unbelievably confusing for all kiwis investing in foreign assets. Sharesies team you'd benefit from making a well illustrated and simplified guide available for their users. Good questions were asked but the delivery of the answers missed the mark.

[@nathstarnz]

Some of this information is incorrect... The FIF tax certainly DOES apply to everyone's KiwiSaver (on the overseas shares). Not only that but KiwiSaver funds must use the FDR method, which means we (via the fund) pay tax on 5% of the market value (of the overseas shares), even if the share price has dropped.

[@serioussaver]

most terrible tax rule ever !