Well that is just a difference in interpretation. Where do you you get "taxing on turnover" out of that. Not allowing a taxable loss against other income is just that and no more.
Printable View
Exactly
I will support taxable loss on investment property against other income if the government makes the interest on the mortgage for our family home tax deductible. That's never going to happen. Why, as a high income earner do I have to subsidise property investment?????
Interest is an expense against income in order to calculate profit.
Copied from Sgt Pepper's post....
"The hard-to-like Bill Shorten, on the other hand, actually had sensible policy that resonated with many. Shorten even stole some of Turnbull’s sensible ideas, such as removing negative gearing on investment properties"
Nothing to do with startups.
No. Even if there isn't a loss the interest paid goes out the window according to the suggestions from proponents of such nonsense.
Anyway it's unworkable. e.g. To give a very simple example: if I earn 10k from source A, and lose 10k from a rental income because of interest - I have no money. What am I going to pay my tax with?
Well that is exactly what they are trying to achieve. You will have to borrow less in order to have less interest to pay therefore the amount you pay for the property will have to be less if your deposit is to remain the same. Everyone will be in the same boat so properties will adjust downwards.
Well that is the theory. In practice who knows.
I think we have dome this to death.
"Prime Minister John Key has signalled loudly to the Reserve Bank that it should extend existing loan to value ratio (LVR) restriction on investors to curb house price rises - and to move quickly"
John Key is doing so many U turns he must be suffering from motion sickness. A conviction politician he most certainly is not. The principled conservative wing of the National Party must be increasingly exasperated.