Originally posted by Anthonyacat
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Ring Fencing Matters
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My mole tells me that the intent of the Labour policy is to treat every property as a stand-alone tax unit.
So if you have two rental properties, one postive and one negative cash flow you would be expected to pay income tax on the profitable one but not be able to deduct the losses from the other.
Not sur how this would work if you buy a tin of paint and then use some on each house. Some creative accounting to be required there.Last edited by flyernzl; 15-05-2017, 02:24 PM.
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That sounds like a lot of work. Expect accounting fees to go up too - which of course, you'll have to raise your rents further for.AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
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Originally posted by prometheia View PostDoesn't this merely bring property inline with businesses? A business has it's losses ring-fenced.
RossBook a free chat here
Ross Barnett - Property Accountant
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Originally posted by flyernzl View PostThe reality is that it is not just Councils. Its also the 'not in my back yard' crowd:
"Neighbours up in arms over five homes on single Auckland section"
http://www.nzherald.co.nz/property/n...ectid=11854629Squadly dinky do!
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Originally posted by flyernzl View PostMy mole tells me that the intent of the Labour policy is to treat every property as a stand-alone tax unit.
So if you have two rental properties, one postive and one negative cash flow you would be expected to pay income tax on the profitable one but not be able to deduct the losses from the other.
Not sur how this would work if you buy a tin of paint and then use some on each house. Some creative accounting to be required there.Squadly dinky do!
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From my experience no matter what politicians do, the market will take care of itself ..a recent example is the 40% deposit for investors yes it has slowed the market down however has any landlords on this forum increased rent recently with out to much hassle ?it's because there are less rentals in the current market ...because there is less investors with 40% deposit. .if you want to improve housing affordability look to Christchurch an over supply of housing (for now any way )a flat market and declining rents...get rid of negative gearing?we all know who pays for that wether we like it or not. .I wish politicians would butt out because they are only going to make the rich, richer and the poor, pooorer ..landlords have been around since biblical times and there not going away because a certain politcal party wants attention.
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You should read the comments over at interest.co.nz.
All basically laying into the 'landlord cartel', can't wait for more costs to be heaped on house investors because it's unproductive investment blah blah blah: http://www.interest.co.nz/property/8...sms-rents-willSquadly dinky do!
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Originally posted by prometheia View PostDoesn't this merely bring property inline with businesses? A business has it's losses ring-fenced.
Originally posted by Lego_Squared View PostBy definition, you're a Speculator if you're running cash losses and relying on the price appreciation of a scarce asset to provide you with future returns.
Actual investors need not fear.
Yes, the ringfenced losses would eventually be utilised against future income, but why should they lose out on the tax refunds for several years in the interim?AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
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In the short term it will quieten the market just like every change..... In the long term, the market will absorb it and truck on just like every change.
Remember when removing depreciation was supposed to be the "property killer".
We might see people with a lot of built up losses buying an orchard or some other cashflow business just to zero out all their taxes.
Originally posted by Bob Kane View PostCan a wise person explain what would happen if ring-fencing of negative gear properties was introduced?
I can't see it increasing the supply of new houses.
Would it cause house prices to drop? I have some doubts about that.
Would it push rents up? This seems more likely.
Is it aimed at discouraging long term investors or the quick-flick developers?
I'm hoping Tony Alexander will give his thoughts in his next newsletter.Free online Property Investment Course from iFindProperty, a residential investment property agency.
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Originally posted by Nick G View PostIn the short term it will quieten the market just like every change..... In the long term, the market will absorb it and truck on just like every change.
Remember when removing depreciation was supposed to be the "property killer".
We might see people with a lot of built up losses buying an orchard or some other cashflow business just to zero out all their taxes.
Rather than increase the supply of housing and keep rents down, negative gearing encourages people to buy speculatively in the housing market
Many countries abolished it years ago, their property markets seem to keep doing what property markets do.
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