New Perspective on the "ABSD Loophole": Not Necessarily a Sign of Ignorance Among Property Buyers...
Recently, there is news that IRAS is probing into cases where some property buyers transferred 1% of their property shortly after buying and this may be tax evasion. How could it worked so we find out... Disclaimer: I'm trying to figure out why it may have been a loophole. The narration is from my best assumption on how it works and may contain inaccuracies. Consult a proper lawyer with regards to home ownership structure. Article source: ****** BUY SOMETHING YOU VALUE ✅ ✅ ✅ (All sales will be part of the $10,000/y JOSH TAN BURSARY to NTU for two deserving students or towards promoting financial literacy) #1 ONLINE INVESTMENT COURSE AT JOSH TAN ACADEMY ► Follow this link - Why you do NOT need to spend thousands on investment courses? LEARN HOW to research into stocks and identify multi-baggers (at least in Josh Tan's way). Course price at $37 only. NEW BONUS MODULE ADDED and UNLIMITED re-access given with this new structure for future revision. #2 PRIVATE MEMBERS channel ► TIER #3 "LETS MAKE A DIFFERENCE " and TIER #2 "PRIVATE INVESTMENT VIDEO" Will UNLOCK ALL VIDEOS especially those with VALUE/Momentum matrix on certain stocks! TIER #1 Support our channel tier will unlock ONLY the cryptocurrency videos #3 SUPER THANKS Stickers & Super Chat during LIVE SHOW **** FOR INVESTING, 3 SUGGESTIONS FOR YOU ► NEW SYFE TRADE - Referral code ASTUTEPARENT today with syfe and get $70 FREE (min $2k deposit and 1 trade to qualify) ► NEW LAUNCH 🔥 In partnership with WeBull stocks trading account! Get Your Free Shares! (T&C applies) Step #1 Step #2 - Go under open account and use Myinfo. Step #3 - Deposit after application approved! Step #4 Start trade ► Get your FREE stock from Moomoo: TO LEARN MORE, 3 SUGGESTIONS FOR YOU ► NEW podcast channel "The Josh Tan Show" On Personal Finance: By Spotify - ► To see updates and take part in polls, join my TELEGRAM "Josh Tan Investment Official Group" here - ► Meet Josh Tan On Instagram ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY! ► **** 0:00 Introduction 0:38 Puppet and Puppet master 2:10 Decoupling 3:50 Are they stupid? 5:16 Previous ABSD loopholes 6:10 My hypothesis 7:57 What will happen #property #sgproperty #iras #absd #investment #propertyinvestment We do not make any recommendations on whether a security is a buy/sell as every investor has different investment goals and risk profiles. The presentation of ideas from Josh Tan and TheAstuteParent are strictly for education purposes. You are advised to perform independent research yourself or seek a qualified financial adviser. We will not be liable for any losses directly or indirectly from the material. Some of the referral links in the video summary are products and services personally used by Josh Tan and they may pay an affiliate commission or referral bonus. It is not an endorsement of the product unless explicitly stated and we will not be liable for any losses. The content in this video and any promotions mentioned is accurate as of the posting date. ******* About Josh Tan: Josh holds a degree in Accounting from NTU. In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips. As a ChFC Charterholder, Josh has agreed to be bounded by the ChFC®/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video. ENGAGE Josh Tan on a fee for full retirement planning NOW - Hear the IMPROVEMENTS you can make IMMEDIATELY! ► ...(read more)
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In recent years, the Singapore government has implemented various measures to cool down the local property market, including the Additional Buyer's Stamp Duty (ABSD) which imposes additional taxes on certain categories of property purchases. However, some property buyers have been able to exploit a loophole in the ABSD policy, enabling them to avoid paying the additional taxes legally. The ABSD loophole works by allowing buyers who have already paid ABSD for a previous property acquisition to claim a refund for their subsequent purchase, as long as they sell the original property within six months from the date of the second purchase. This means that a buyer who has already paid ABSD for a property can buy another property without having to pay the extra taxes, provided that they sell their previous property within the stipulated time frame. At first glance, this loophole may appear unfair, and it's easy to assume that those who utilise it are trying to cheat the system or are simply ignorant of the rules. However, upon closer inspection, it is clear that these property buyers are not stupid, and in fact, they are simply taking advantage of a legal opportunity to save money. One reason for this is that the ABSD is a significant financial burden, particularly for those who are buying more expensive properties. The rates for ABSD start at 12% of the purchase price for foreigners, and 7% for Singaporeans purchasing their second property. For those buying their third or subsequent property, ABSD rates can go as high as 15% of the purchase price. The ability to claim a refund for ABSD paid on a previous property can result in substantial savings, especially for those who frequently buy and sell properties. Moreover, the ABSD loophole is not a new concept, and many savvy property buyers and investors have been using it for several years. It's also worth noting that using the loophole is not as simple as it seems, as it requires careful planning and execution to ensure that the sale of the first property is completed within the given timeframe. This implies that those who use the ABSD loophole should have a good understanding of the property market and should be able to make informed decisions about when to buy and sell properties. In conclusion, the ABSD loophole is a legitimate legal avenue for property buyers to avoid paying additional taxes. Those who use it are not stupid, but rather, they are savvy investors who understand how the property market works and how to maximise their gains. While it may seem like a loophole that should be closed, one could argue that it's better to encourage property buyers to keep investing in the local market and to keep the economy moving, particularly during uncertain times. https://inflationprotection.org/new-perspective-on-the-absd-loophole-not-necessarily-a-sign-of-ignorance-among-property-buyers/?feed_id=89545&_unique_id=6440afeba8265 #Inflation #Retirement #GoldIRA #Wealth #Investing #991absd #absd #absdloophole #absdsingapore #buying2ndproperty #buying2ndpropertyinsingapore #howtoavoidabsd #howtobuycondoinsingapore #propertyinvestment #propertyinvestmentsingapore #propertysingapore #realestate #singaporeproperty #QualifiedRetirementPlan #991absd #absd #absdloophole #absdsingapore #buying2ndproperty #buying2ndpropertyinsingapore #howtoavoidabsd #howtobuycondoinsingapore #propertyinvestment #propertyinvestmentsingapore #propertysingapore #realestate #singaporeproperty
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