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Poll: How would ring-fencing of residential rentals affect you?

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  1. #131
    Join Date
    Mar 2013
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    Quote Originally Posted by Rosco View Post

    2) single rental property owners - if you have losses, and always have losses and never make a profit, then why did you buy it? If to sell for a profit, then aren't you a trader!
    In my opinion this part is fair. You should not be able to run a loss for years and years, never make a profit, and then sell to get a tax free capital gain.


    Ross
    What about the Mum and Dad investors who are propping up their rental, planning for it to be neutral after a few years and then cashflow positive by the time they retire, to provide a nice, wee supplement to their super? Only while it is still negative, the main earner suffers a catastrophe and now can't work anymore. They can't afford to keep propping it up, so have to sell. Capital gains are minimal and now they can't use their accumulated tax credit. They are well and truly screwed over by a change in circumstances.

    The thing is, shit happens to people and plans have to change. Anything implemented to punish the 'guilty' also punishes the innocent.
    My blog. From personal experience.
    http://statehousinginnz.wordpress.com/

  2. #132

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    Sell the entity not the asset.

    Quote Originally Posted by Keys View Post
    I too, believe this is part of their plan. I wonder if the ring fenced losses will be transferable to the new investor/owner.

  3. #133
    Join Date
    Feb 2013
    Posts
    325

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    That's right , some have purchased with hard earned savings which was taxed as well.

    What other forms of investments have ring fencing tax?

  4. #134
    Join Date
    Feb 2013
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    325

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    How about profits are ring- fenced as well- pay no tax until losses occur.

  5. #135
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,694

    Default

    Shame we do not have an Arc de Triomphe to use as a backdrop for some voluble protests.

    But a demonstration of 14 PIs isn't likely to garner much attention, is it?
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #136
    Join Date
    Apr 2004
    Location
    Auckland
    Posts
    1,890

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    What I don't understand is why aren't the tenants up in arms?
    What happens when yet another rent subsidy is removed?
    Rents go up.
    Guess they just aren't too bright.
    Last edited by PC; 09-12-2018 at 04:33 PM.
    The three most harmful addictions are heroin, carbohydrates and a monthly salary - Fred Wilson.

  7. #137
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,694

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    That's because they are not 'making the connection' between rents, the gummint's obtuseness, un-keepable promises, etc.

    Hell! Dhil blithely ignores advice on consequences he gets from officials.

    So tenants must be able to do the same, right?
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  8. #138
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,549

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    Quote Originally Posted by Nick G View Post
    Sell the entity not the asset.
    There are still rules to capture selling the entity
    - doesn't get around brightline
    - general loss limitation rule, if you sell over 51%, then the entity forfeits the losses carried forward

    Also no lawyer or accountant will like a client buying an entity!

    Lastly - why would a new buyer, get the old buyers losses from a rental? Nothing to do with the new buyer!

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  9. #139
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,549

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    In general I don't like ring fencing, and think any business should be claim losses, especially in the first few years.

    But as I put above claiming losses for years and years and years, and then selling for a capital gain, no tax, without ever making a profit, or even getting close, isn't right either.

    Like most things under Labour, it is rushed and poorly thought through, but its still coming.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  10. #140
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,694

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    Quote Originally Posted by Rosco View Post
    Like most things under Labour, it is rushed and poorly thought through, but it's still coming.
    Sounds just like kiwibuild, then.
    With all the Draconian new laws for residential rental LLs, perhaps AirBnB would be better? To avoid any hassle in Hawke's Bay, consult Be My Hostess. Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!


 

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