20. Haven’t I already paid tax on the money I used to buy the house?

20. Haven’t I already paid tax on the money I used to buy the house?

Answer

You’ve paid tax on the income you’ve then saved to own the asset much the same as you do when you accumulate funds in a bank deposit. You haven’t paid tax for the services it provides you each year. A tenant pays their rent out of tax paid income, and then the landlord pays tax again when he receives that rent. What we’re doing here is ensuring owners face the same tax impost as tenants.


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