Originally posted by cube
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I guess it depends on when the gain would be taxable. If it only when it is realised on sale, then buy and hold becomes even more attractive.
As for buildings not been depreciable - I don't think that would fly with the commercial property owners who provide the office space for the country, and distinguishing between commercial and residential would quickly become a blurred distinction.
The argument that tax incentives are effectively the government paying investors to provide a social service (housing) that the the government is unable or unwilling to provide itself holds true. If RE becomes massively unattractive as an investment, then rents will skyrocket and the gvt will be left to pick up the bill and/or the people on the streets.
Having said that, only current investors would be disadvantaged - once any rule change is in place, the numbers will still be the important thing - can the rent for this property cover its expenses. Whether that is before or after tax or before or after any contribution from the investor (-ve gearing) is a decision for individual investors to make. What changes is the way the numbers are calculated, and the result may be increased rents to make property stack up as an investment.
Do Aus/UK/US charge CGT - if so, what effect does it have?
Happy taxing
cube
As for buildings not been depreciable - I don't think that would fly with the commercial property owners who provide the office space for the country, and distinguishing between commercial and residential would quickly become a blurred distinction.
The argument that tax incentives are effectively the government paying investors to provide a social service (housing) that the the government is unable or unwilling to provide itself holds true. If RE becomes massively unattractive as an investment, then rents will skyrocket and the gvt will be left to pick up the bill and/or the people on the streets.
Having said that, only current investors would be disadvantaged - once any rule change is in place, the numbers will still be the important thing - can the rent for this property cover its expenses. Whether that is before or after tax or before or after any contribution from the investor (-ve gearing) is a decision for individual investors to make. What changes is the way the numbers are calculated, and the result may be increased rents to make property stack up as an investment.
Do Aus/UK/US charge CGT - if so, what effect does it have?
Happy taxing
cube
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