I'm not aware of any glaring holes. If you are trading, you should be paying tax on the profits.
If you are a long term investor, the tax is paid based on the same formula as all companies. Profit = income less expenditure less depreciation of assets. Depreciation, although a paper item, is very very real for long term investors. If you are paying someone else to do it, a major refurbishment every 10 to 15 years is $20 to $30K. At some stage the roof needs replacing. Sometimes repiling is necessary. All these things are what depreciation is about and they are very real expenses. If the depreciation rates are too generous, they can be changed.
To accuse and then develop a different tax system for rental properties verses all other companies sounds like a tax grab.
If an investor invests in something that is really making a loss, just to save paying tax on their other income, I'm available to pay them 39 cents for every dollar they give me. If its a cash loss before depreciation, it really is a case of losing a dollar to gain 39 cents. If they think the depreciation part is 'free' tax relief, then they obviously have not owned a rental for long enough.
John
If you are a long term investor, the tax is paid based on the same formula as all companies. Profit = income less expenditure less depreciation of assets. Depreciation, although a paper item, is very very real for long term investors. If you are paying someone else to do it, a major refurbishment every 10 to 15 years is $20 to $30K. At some stage the roof needs replacing. Sometimes repiling is necessary. All these things are what depreciation is about and they are very real expenses. If the depreciation rates are too generous, they can be changed.
To accuse and then develop a different tax system for rental properties verses all other companies sounds like a tax grab.
If an investor invests in something that is really making a loss, just to save paying tax on their other income, I'm available to pay them 39 cents for every dollar they give me. If its a cash loss before depreciation, it really is a case of losing a dollar to gain 39 cents. If they think the depreciation part is 'free' tax relief, then they obviously have not owned a rental for long enough.
John
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