On one thread it was argued that the tax advantages of an LAQC disappear after a short time when the property owned becomes profitable. The implication is the LAQC structure doesn't give property investors an unfair advantage.
However my observation of people who own rental houses is they sell them for a capital profit after a few years. I'm thinking of mum and dad investors. So, using an LAQC they make tax deductions over say 5 years, get refunds, then sell the property for a capital gain - which isn't taxed. Win for them - loss for the general taxpayer.
That is the sort of thing the TWG is focused on.
However my observation of people who own rental houses is they sell them for a capital profit after a few years. I'm thinking of mum and dad investors. So, using an LAQC they make tax deductions over say 5 years, get refunds, then sell the property for a capital gain - which isn't taxed. Win for them - loss for the general taxpayer.
That is the sort of thing the TWG is focused on.
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