Originally Posted by
elZorro
As a normal business owner, you are now allowed to claim back certain R&D losses soon after the year they were incurred. All the rest of any losses have to be carried forward until you make a profit, if any. The rules National has put in place for such 'R&D' mean that very few activities will be in the correct slot. No patent/trademark costs. No work on refining an existing product. No new version of an existing product from somewhere else. Etc etc - you may as well not apply, unless you are one of the very few businesses where that would be applicable. But the policy sounded good, didn't it?
However, FP, as I'm sure you will be aware, a rentier has no such issue. Any and all interest costs, maintenance etc that is coded up, will be claimable in the year it was incurred. Since most landlords have either another income, or are well established enough to have a net income regardless, they claim the lot against other income streams, and in addition have a fairly usual capital gain that is tax free, to look forward to. So these relatively unproductive enterprises that employ few people, don't export anything, don't increase our potential at all, have a far better tax setup than a entrepreneurial enterprise that normally has to use private equity of the owner(s) to get started, because the banks won't lend to them unless they have property security.