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.
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.
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.
I figured my FIF income using the FDR method but encountered major difficulties in entering the correct amounts on MyIrd along with the details of individual overseas holdings.I enquired to IRD on several occasuons but because FIF is relatively rare the Custoner Service staff could not help. The IRD guide is unhelpful on how to actually enter the information onto MyIRD. Perhaps a You Tube video showing how to enter the income, credits and details of foreign holdings could be prepared to help filers.
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.
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
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.
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..?
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.
Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments
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.
They should look to review that 50k figure, given massive inflation over the years.
They get particularly forgetful & caught up in the admin with that kinda thing
Yeah, crazy hasn’t increased in years.
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.
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.
Agreed
request this feature in the drop down menu within the app!
@@patriotlegionRS I have put in a request for it, thanks for the suggestion!
Good point at the end about the NZ Smartshare funds, classed as NZ even if they then invest overseas in S&P 500, etc.
Could you please explain why we cant call on losses?
I figured my FIF income using the FDR method but encountered major difficulties in entering the correct amounts on MyIrd along with the details of individual overseas holdings.I enquired to IRD on several occasuons but because FIF is relatively rare the Custoner Service staff could not help. The IRD guide is unhelpful on how to actually enter the information onto MyIRD. Perhaps a You Tube video showing how to enter the income, credits and details of foreign holdings could be prepared to help filers.
I'm still confused by this, I'll watch it again later
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.
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
@@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.
I think there should be some exceptions. e.g. need to ditch a company due to delisting or some major unexpected negative announcement.
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.
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..?
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.
most terrible tax rule ever !