If National wins ...

[777]

That's removing deductibility, or taxing on turnover rather than profit. That brings in a huge set of problems. Anyway it's far different than 'removing negative gearing'.

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.

[777]

If that's the case, then someone who is still employed would never dare start a small business on the side? I'll vote against any political party with that policy and/or guideline.

The argument was to not allow negative gearing on investment property.

[Sgt Pepper]

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.

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?????

[fungus pudding]

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?????

Std business practise world wide is to tax profit. Expenses such as interest do not form part of profit.

[777]

Interest is an expense against income in order to calculate profit.

[fungus pudding]

Interest is an expense against income in order to calculate profit.

Exactly what I said. Only the profit should be taxed.

[artemis]

Easy. Don't allow the negative figure to be deducted against other income.

So it would be a loss cfwd against income from the same source? Ringfencing? Should it apply to all sole traders? (If not, why not?) Certainly a quick way to pour a bucket of cold water on many start ups.

[blackcap]

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?????

Why is that never going to happen Sgt Pepper? In The Netherlands the interest on your mortgage for family home IS tax deductible, whilst interest on investment properties is NOT tax deductible. Interesting huh!

[777]

So it would be a loss cfwd against income from the same source? Ringfencing? Should it apply to all sole traders? (If not, why not?) Certainly a quick way to pour a bucket of cold water on many start ups.

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.

[777]

Exactly what I said. Only the profit should be taxed.

The profit is taxed. It is only if there is a loss that that loss would not be deducted against "other income". i.e. your salary etc