That’s what they call capital gains tax here JS
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That’s what they call capital gains tax here JS
In my last position as president of a company, all division managers had to prepare, budgets for the following year and project budgets for the following four years. and various other five year plans. After individual study they would all be signed off on and I would consolidate them for presentation to the B.O.D..
When I retired I did and still prepare annually, for me and my wife, a five year plan and five year net worth statements.
I'm currently preparing my income tax for 2019 and doing my five year plan. I'm behind on it as I have no financial history regarding apartment living and related expenses to project. Two full months now in the apartment will allow me to project. I figured when I retired, if I could run an international company with financial planning I sure as hell should do it for us and we called it "Mills Incorporated".
I say this, so that you will be aware that I considered repairs and maintenance, property tax and all related expenses when I calculated profits in real estate.
We have a law that over the age of 60 you can, one time only, avoid property tax on the gain of sale of your principle home. I sold my Connecticut home the year I was 60 and paid no capital gains tax, it was tax free.
It costs us more to live in an apartment, rent vs. mortgage, including less utility costs, repairs and maintenance, gardening etc.etc.. than it did in our house.
We estimated that increase as best we could before we sold and moved.
Each year, when I have completed my new five year plan, my wife and I sit together at the dining room table and Mills inc. has a financial meeting and we go over it jointly and make adjustments (fine tuning). Our net worth is adjusted to the new plan and we know for sure we will not run out of money if she lived to be 120 (she is 10 years younger than me).
I hope this information is of use to somebody.
Cheers, Rodney:cool:
Owning properties here is often done as a means of saving for retirement.
That is fine if you have more than one or two.
If fully paid for you may get enough from rent to live on, but if not you must sell.
Then the capital gains tax kicks in, which depending on the value at sale compared with cost of buying can be substantial.
If you are smart you may be able to set up the monies from the sale in such a manner that you will still get a small state pension which means you will also get concessions on gas, electric, water, rates and a few other bits. Can be worth a fair bit most years.