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.
Was this helpful?
-
Joe Wurts commented 2016-12-07 21:54:29 +1300This is just silly… simple logic has the owner forgoing any interest gained from a bank deposit when using said funds to purchase a house. What you are doing here is ensuring that homeowners are facing an even larger overall expense as compared to renting. The lost opportunity cost of the capital utilized for a home purchase is completely missing.
The next largest item for taxation is the “services” your car provides, as otherwise one would be hiring a taxi, riding the train, or using a bus. This concept of taxing all DIY transactions is a DOA concept IMO. -
Oliver Krollmann followed this page 2016-12-07 10:27:58 +1300