Chewbacca 1st Gear April 3, 2012 Share April 3, 2012 Not exactly a loophole. But just wanted to run this idea through your guys to see if it actually works.... Let's say you confirm + double confirm that you'll buy a property within this year. And assuming that you have more than enough cash to cover whatever cash component (stamp, min-sum or whatever they're called) for your property... Do a CPF Cash topup with the extra cash. This should be tax deductable, isn't it? Then just use the same amount of CPF to pay for the rest of the non-cash component of the property. Won't this work? In short. You have 100K cash. Your property requires 50K cash. Put 50K cash into CPF via CPF cash topup. Assuming you made so much that 200K are taxable that year, with the CPF topup, you have only 150K taxable instead. Then you just use the bigger CPF to pay for the rest of the property. You end up with the property and less tax payable. Is this workable? ↡ Advertisement Link to post Share on other sites More sharing options...
Joseph22 Turbocharged April 3, 2012 Share April 3, 2012 Not exactly a loophole. But just wanted to run this idea through your guys to see if it actually works.... Let's say you confirm + double confirm that you'll buy a property within this year. And assuming that you have more than enough cash to cover whatever cash component (stamp, min-sum or whatever they're called) for your property... Do a CPF Cash topup with the extra cash. This should be tax deductable, isn't it? Then just use the same amount of CPF to pay for the rest of the non-cash component of the property. Won't this work? In short. You have 100K cash. Your property requires 50K cash. Put 50K cash into CPF via CPF cash topup. Assuming you made so much that 200K are taxable that year, with the CPF topup, you have only 150K taxable instead. Then you just use the bigger CPF to pay for the rest of the property. You end up with the property and less tax payable. Is this workable? when you sell your house, those money go back to CPF dont come here KPKB Link to post Share on other sites More sharing options...
Throttle2 Supersonic April 3, 2012 Share April 3, 2012 (edited) Not exactly a loophole. But just wanted to run this idea through your guys to see if it actually works.... Let's say you confirm + double confirm that you'll buy a property within this year. And assuming that you have more than enough cash to cover whatever cash component (stamp, min-sum or whatever they're called) for your property... Do a CPF Cash topup with the extra cash. This should be tax deductable, isn't it? Then just use the same amount of CPF to pay for the rest of the non-cash component of the property. Won't this work? In short. You have 100K cash. Your property requires 50K cash. Put 50K cash into CPF via CPF cash topup. Assuming you made so much that 200K are taxable that year, with the CPF topup, you have only 150K taxable instead. Then you just use the bigger CPF to pay for the rest of the property. You end up with the property and less tax payable. Is this workable? There is a price to pay. and that is the inflexibility and the rules and regulations tied down to the funds in CPF. for that inflexibity, you get a rebate. so you decide which you prefer and act accordingly , loh money in your hand or money in peoples hands which technically belongs to you. always remember that CPF money must be returned to CPF when you sell the property. if it's your money, it goes back into your pocket free of restrictions. Edited April 3, 2012 by Throttle2 Link to post Share on other sites More sharing options...
Mightymito 1st Gear April 3, 2012 Share April 3, 2012 are you sure anyone can happy happy top up cpf? The yield is higher than fixed deposit. Its only for self employed and even then theres a limit. From what I remember the one that anyone can happy happy top up is medisave but only up to 41k. Link to post Share on other sites More sharing options...
Acemundo Supercharged April 3, 2012 Share April 3, 2012 like what others have say, there is a tradeoff..... you gain on the tax deduction but you lose on flexibility of the cash. cash you can use to invest anything (including commercial) or even pool with relative to buy property. cpf can only use for such limited purpose. and worse is, if they revise rules on the amount in OA you can use to service your house instalment or principal. Link to post Share on other sites More sharing options...
Gerd Clutched April 3, 2012 Share April 3, 2012 No loophole there. Not possible at all. Cash topups if you are employee are non tax deductible. Cash topups to SA is tax deductible up to 7k only. Link to post Share on other sites More sharing options...
Mightymito 1st Gear April 3, 2012 Share April 3, 2012 And SA limited to 131k onli Link to post Share on other sites More sharing options...
Throttle2 Supersonic April 3, 2012 Share April 3, 2012 are you sure anyone can happy happy top up cpf? The yield is higher than fixed deposit. Its only for self employed and even then theres a limit. From what I remember the one that anyone can happy happy top up is medisave but only up to 41k. i'm not sure , i wasnt even going to go there. just talking about the difference between money in hand and money in CPF is enough for me to say no. haha Link to post Share on other sites More sharing options...
Jman888 Moderator April 3, 2012 Share April 3, 2012 (edited) i believe the tax deductible CPF amount only come from employment source, cash top up should not be entitled, just my guess. Edited April 3, 2012 by Jman888 Link to post Share on other sites More sharing options...
Joseph22 Turbocharged April 3, 2012 Share April 3, 2012 And SA limited to 131k onli why 131K only? Link to post Share on other sites More sharing options...
Acemundo Supercharged April 3, 2012 Share April 3, 2012 i believe the tax deductible CPF amount only come from employment source, cash top up should not be entitled, just my guess. if i not wrong, top up to SRS is tax deductible as do top up to parents' cpf account Link to post Share on other sites More sharing options...
Donut Supercharged April 3, 2012 Share April 3, 2012 not so easy, bro. Garment where got so stupid one. what u take out from CPF, you got to put in back in CPF when u sell off property. So technically u 'lose' that $50k....... Link to post Share on other sites More sharing options...
Mightymito 1st Gear April 3, 2012 Share April 3, 2012 Because gahmen say so Else when you are 50+ years old , you can dump everything there and get 4% interest with zero risk. Better than fixed deposit, stocks or property. You can then withdraw anything above 131k when you are 55. Link to post Share on other sites More sharing options...
2009k Neutral Newbie April 3, 2012 Share April 3, 2012 And SA limited to 131k onli Sure or not? Was told otherwise, i.e. the SA can go above min sum figure... Link to post Share on other sites More sharing options...
Joseph22 Turbocharged April 3, 2012 Share April 3, 2012 Because gahmen say so Else when you are 50+ years old , you can dump everything there and get 4% interest with zero risk. Better than fixed deposit, stocks or property. You can then withdraw anything above 131k when you are 55. oh.. now then i know SA got limit one i always thought money will stay inside until 55 years then can take out. okay.. so its actually pay to transfer cash from Ordinary account to Specia account... good. next time when this exercise open up. maybe i do that.. faster reach limit liao, then every year they send money back to me Link to post Share on other sites More sharing options...
Chewbacca 1st Gear April 3, 2012 Author Share April 3, 2012 Oh, yeah, forgot about that part about returning money to CPF.....hmmm, this is good for buying for own stay ba. Or for super long term investment. If sell, that means will buy again after cycle goes down. The CPF definitely can cash top up leh? I remember my colleague talked to me about it. Asking me if I thought about doing that. Both of us simple salary men.... Yeah, agree about lost of flexibility, that one I understand. That's why this is something that should only be looked at if you want to buy property. Hmm, sounds like not so useful liao. I'll keep this in my mind, incase.... Link to post Share on other sites More sharing options...
Bighappyjer 1st Gear April 3, 2012 Share April 3, 2012 For penny pinchers, top up with the Stan Chart Manhattan card and use the cashback to cover the admin fee Link to post Share on other sites More sharing options...
Maroon5 5th Gear April 3, 2012 Share April 3, 2012 bro, doesnt work. such top ups go to your special account, not ordinary. ↡ Advertisement Link to post Share on other sites More sharing options...
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