An income tax 'loophole' for those buying properties?

[Mrmilktooth]

but we wouldnt know when they will change rulings and increase the cap to higher amounts.. then LPPL..

[LoverofCar]

Even if it is loophole...you posted here...you are effectively plugging the hole now...

[Jj5599]

Can't work for sure bro.

[Good-Carbuyer]

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.

Also remember CPF = Chronic Providenrt Failure. You want to fail?

[Good-Carbuyer]

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.

Why only compare with fixed deposit? Why not Compare with Duel Currency? Duel currency safer than CPF and higher yield if you do it right.

[Jj5599]

You want to buy property, be prepared for the cash and CPF. You want discounts? Negotiate with seller/developer.

[Throttle2]

Why only compare with fixed deposit? Why not Compare with Duel Currency? Duel currency safer than CPF and higher yield if you do it right.

 

wait you get caught one time and die c--k stand then you come and safer ok.

 

everything is safe if you do it right ler

[JJ_JJ]

It's not really a loophole, and you can always do that if you want. However, there are a few considerations to take note

 

(1) the limit of tax reduction permissible

 

(2) the limit of CPF portion (%) which you can use to service the entire mortgage of flat

 

(3) the minimum sum which you need to have in the accounts to cash in when you hit the age requirement

 

(4) the liquidity upon cashing in of your flat in future upon resale (profit or loss)

 

(5) the accrued interest you need to pay back into your OA upon cashing in from the sales proceed of your flat in future

[Joseph22]

It's not really a loophole, and you can always do that if you want. However, there are a few considerations to take note

 

(1) the limit of tax reduction permissible

 

(2) the limit of CPF portion (%) which you can use to service the entire mortgage of flat

 

(3) the minimum sum which you need to have in the accounts to cash in when you hit the age requirement

 

(4) the liquidity upon cashing in of your flat in future upon resale (profit or loss)

 

(5) the accrued interest you need to pay back into your OA upon cashing in from the sales proceed of your flat in future

All this can be overcome when u sell after 55 because min sum already set so u take the rest out as cash.

[Good-Carbuyer]

wait you get caught one time and die c--k stand then you come and safer ok.

 

everything is safe if you do it right ler

Relax. Do not worry. As long as we can sustain 80% accuracy, safe and sound, happy go lucky.

[Nirxe]

Extracted from CPF webbie:

You can also enjoy tax relief of up to $7,000 per calendar year, if you or your employer use cash to make top-ups for you. You can enjoy an additional tax relief of up to $7,000 per calendar year if you use cash to make top-ups for your siblings, spouse, parents or grandparents. To qualify for tax relief for cash top-ups for siblings/spouse,

Edited April 3, 2012 by Nirxe

[Nightchaser]

It doesn't work because there is ceiling to capital contribution to CPF, its about 30K last year. There is a ceiling to your CPF contribution.

 

So if you do earn decent money, you would realised that it is capped.

 

Even if you want to take advantage of the higher interest rates, there is also a limit which frankly is not very high.

 

 

 

[Throttle2]

Relax. Do not worry. As long as we can sustain 80% accuracy, safe and sound, happy go lucky.

 

 

80%, in that case, you will be better off buying directly instead of using a deposit overlay with selling a put option

 

your 80%correct dont earn much, but your 20% wrong can make you die c--k stand. haha

 

just be careful.

Edited April 4, 2012 by Throttle2

[Good-Carbuyer]

80%, in that case, you will be better off buying directly instead of using a deposit overlay with selling a put option

 

your 80%correct dont earn much, but your 20% wrong can make you die c--k stand. haha

 

just be careful.

Relaxe. Do not worry. Can breakeven with 75-80% accuracy. 20% error can be overcomed by the 80% accuracy. Definitely better than CPF=Chronic provident Failure at 2.5%. GST already 7% (7-2.5=4.5% constant loss). I believe at the moment only Duel Currency can overcome the 7% GST