Taxman is after me for CAPITAL GAINS

[price]

Every major street there is a camera with facial recognition tech watching u, it is even easier to catch traders posting to this forum, trace your ip address enough

If trading in property is taxable then wat about Trading on the stock market and forex? is that taxable too?

[chiaberry]

One big lesson from this is:

Never never use your name for relatives' transaction of any sort. Whether it be property or stocks and shares or business. If anything goes wrong, it's YOUR name on the documents and you are responsible and liable. The relative is not the one who has to answer to the authorities.

It is also not wise to share property with relatives. It may seem a good idea at the time but later on, the circumstances may change and you and your relative(s) may have different priorities or the relationship may go sour. And then you will be in trouble.

[price]

One big lesson from this is:

Never never use your name for relatives' transaction of any sort. Whether it be property or stocks and shares or business. If anything goes wrong, it's YOUR name on the documents and you are responsible and liable. The relative is not the one who has to answer to the authorities.

It is also not wise to share property with relatives. It may seem a good idea at the time but later on, the circumstances may change and you and your relative(s) may have different priorities or the relationship may go sour. And then you will be in trouble.

Sometimes it may be due to the MOP period. HDBers who can't wait for 5 years may "borrow" relatives' names to invest in the private sector.

[devilplate]

Every major street there is a camera with facial recognition tech watching u, it is even easier to catch traders posting to this forum, trace your ip address enough

dun tink they come here to catch....lol

shd be using computers and based on certain pattern and criteria to flag out potential traders

mlm case is 2 sale every yr for 3 consecutive yrs

[price]

dun tink they come here to catch....lol

shd be using computers and based on certain pattern and criteria to flag out potential traders

mlm case is 2 sale every yr for 3 consecutive yrs

But unless he's doing that for a living, the cap gains are not taxable.

[devilplate]

But unless he's doing that for a living, the cap gains are not taxable.

actually nobody can do flipping for a living in the long run....ultimately sure kena caught by market downturn.....LOL

only way is via rental income.....

[price]

actually nobody can do flipping for a living in the long run....ultimately sure kena caught by market downturn.....LOL

only way is via rental income.....

Ya lor. So precisely why i doubt mlm's case the IRAS is after capital gains. Most probably just tracking rental yield and property tax.

[Lovelle]

actually nobody can do flipping for a living in the long run....ultimately sure kena caught by market downturn.....LOL

only way is via rental income.....

there is a book by Kiyosaki on this.

[chiaberry]

Sometimes it may be due to the MOP period. HDBers who can't wait for 5 years may "borrow" relatives' names to invest in the private sector.

Relatives should not agree to have their names borrowed. This is going against the rules. If they were so naive as to let their names be borrowed, then they have to bear the consequences. And this situation is the one that is most difficult to explain to IRAS.

[chiaberry]

Ya lor. So precisely why i doubt mlm's case the IRAS is after capital gains. Most probably just tracking rental yield and property tax.

Seems he "might" be able explain his own purchases to some extent (helped by the fact that he actually changed his IC for those properties). But his relative's purchase makes his overall case weaker.

[price]

there is a book by Kiyosaki on this.

The Real Book of Real Estate: Real Experts. Real Stories. Real Life. (2010).

[devilplate]

Seems he "might" be able explain his own purchases to some extent (helped by the fact that he actually changed his IC for those properties). But his relative's purchase makes his overall case weaker.

anyway i believe he is unlikely to get tax for all transactions.....most likely access case by case......

now the tricky part is if he got tax for the 300k case....how he gona ask the tax bill from his relative....?

[mcmlxxvi]

Ya lor. So precisely why i doubt mlm's case the IRAS is after capital gains. Most probably just tracking rental yield and property tax.

I declare and pay on time all my rental income tax and property tax. Call me mcm in short la. Mlm got negative connotation leh... If you like even shorter, can call cm (god forbid!!!!) or mc lol

[mcmlxxvi]

Better not to challenge them. Authority in chinese has two "mouth". We bound to lose. Just try to reduce damages. Every action will have a reaction.

I tried few times to figure which character you meant... 3rd try guess 官? Correct?

[mcmlxxvi]

i also bought and sold about 7 since 2008. Not sure if i'll receive the letter too? Shucks.

Bro/sis hope you wont kena. But even if you do touchwood i already started preparing the homework tips here for you guys lol... Of course thanks to all the real helpful bro and sis here...

[mcmlxxvi]

Every major street there is a camera with facial recognition tech watching u, it is even easier to catch traders posting to this forum, trace your ip address enough

Lucky i use mobile internet only... But they can pinpoint cell location yawn

[mcmlxxvi]

actually nobody can do flipping for a living in the long run....ultimately sure kena caught by market downturn.....LOL

only way is via rental income.....

Can. Just set up shell company to do all these trading then pay corporate tax lor

[mcmlxxvi]

anyway i believe he is unlikely to get tax for all transactions.....most likely access case by case......

now the tricky part is if he got tax for the 300k case....how he gona ask the tax bill from his relative....?

Lets see. The 300k was actual sales proceeds. My bad. So that includes the initial downpayment capital. Nett nett profit after costs, expenses etc maybe say 150 to 200k max? Even if taxed that is like perhaps 16k or so. I think this is nothing to the relative who is pretty high post and high salary la...

[richwang]

Did u pay the property tax for the 300K unit. Once it is under your name, you are resposible for everything.

Your relative's high salary means high marginal tax bracket, and the total income can be easily pushed into 20% bracket. So it is still "better" to be under your name. Just treat it as you have paid "Additional Single's Tax" and contributed to National Birth Rate (indirectly). Do them a favour and no need to disturbe the baby.

Thanks,
Richard

[price]

I declare and pay on time all my rental income tax and property tax. Call me mcm in short la. Mlm got negative connotation leh... If you like even shorter, can call cm (god forbid!!!!) or mc lol

Ya lor, so i think they are just checking on accuracy?

[chiaberry]

Lets see. The 300k was actual sales proceeds. My bad. So that includes the initial downpayment capital. Nett nett profit after costs, expenses etc maybe say 150 to 200k max? Even if taxed that is like perhaps 16k or so. I think this is nothing to the relative who is pretty high post and high salary la...

Then it should be no problem for him/her to pay you back. He/she already has a "discount" of the tax since presumably (from the tone of your post), you might be in a lower tax bracket than the relative.

[mcmlxxvi]

Did u pay the property tax for the 300K unit. Once it is under your name, you are resposible for everything.

Your relative's high salary means high marginal tax bracket, and the total income can be easily pushed into 20% bracket. So it is still "better" to be under your name. Just treat it as you have paid "Additional Single's Tax" and contributed to National Birth Rate (indirectly). Do them a favour and no need to disturbe the baby.

Thanks,
Richard

Yes that was paid. Relative transferred me the money in full that time. You are right, he enjoy additional tax relief due to it added on to my side!!!!

[mcmlxxvi]

Ya lor, so i think they are just checking on accuracy?

Confirm not just to check accuracy. The letter already wrote that its to 'review whether gains are taxable'... The objective was spelled out. Although subject line put Income Tax Audit

[Astronotus oscellatus]

Confirm not just to check accuracy. The letter already wrote that its to 'review whether gains are taxable'... The objective was spelled out. Although subject line put Income Tax Audit

Got chance to speak to one IRAS officer...she said buy and sell in less than three years will trigger alert for them to look at you...

[mcmlxxvi]

Got chance to speak to one IRAS officer...she said buy and sell in less than three years will trigger alert for them to look at you...

Oh oh... Then i am sure many bros and sis will also get letter liao. Better not open your mailbox. What you dont know wont hurt you wakaka... Btw i think by far your nick is the longest i have seen in this forum (and any forum for that matter). Lol

[howgozit]

Oh oh... Then i am sure many bros and sis will also get letter liao. Better not open your mailbox. What you dont know wont hurt you wakaka... Btw i think by far your nick is the longest i have seen in this forum (and any forum for that matter). Lol

Fish lover?

[Laguna]

if ur being tax for capital gain, does it mean that next time when u sell at a loss, u can claim back from IRAS?

Also there is no black and white in the 3 years as well

[Lovelle]

Got chance to speak to one IRAS officer...she said buy and sell in less than three years will trigger alert for them to look at you...

3 years ? too much. I think they selectively tax ikan bilis like us. If institutional who are buy/sell, they won't tax.

[EBD]

Lets see. The 300k was actual sales proceeds. My bad. So that includes the initial downpayment capital. Nett nett profit after costs, expenses etc maybe say 150 to 200k max? Even if taxed that is like perhaps 16k or so. I think this is nothing to the relative who is pretty high post and high salary la...

If your relative is high post & high salary why he need to put in your name?

End of the day it is because it is advantageous - if nothing go wrong - to do so at the disadvantage of Singapore taxman. Assume it can't be because he can't get mortgage with high salary.


Frankly, better to be honest all round next time.
I wouldn't let anyone use my name - you never know what they can do if desperate.
Similarly I wouldn't use someone else's name to cheat the taxman. After all the other party can legally sell the unit & pocket all the cash.

Also selling multiple properties it's common knowledge that you could be arrowed as a property trader & subject to gains as income tax.

These things are well known. Why subject yourself to the risk of being used by others who can smile and walk away from the table when the waiter brings the bill?


Anyhow - good learning experience for others out there thinking of pulling this stunt.

[richwang]

You have mis-understood MCM, he is a very helpful person.
All the while you can see, he has honestly declared all his tax laibilities.

It is the Taxman who is not transprant enough, and you need lawyers and even high court to sort out what is "deem" to be a property trading.

If the taxman had clearly said in advance "holding period less than 2 years will need to pay trading income tax", I don't think MCM has any problem to pay.

Now it is Taxman chasing people afterwards, and caught people by potential cash flow surprize.

If your addiontal personnel income tax rate is "deemed" by whether you are a "high" earner, and the Taxman only come back to you years later and ask you pay "high" earner's additional tax, what will you say?

Thanks,
Richard
PS. Lending name is like lending money, just to help relative to buy the HOT HOT property. Clearly no intention to escape tax.