NZ Herald 25 March 2006
Q&As: Stick with share fund investments; Is it wise to depreciate if you’re selling your rental quite soon?; Tax treatment of the expenses of rebuilding leaky rental property.
Q&As: Stick with share fund investments; Is it wise to depreciate if you’re selling your rental quite soon?; Tax treatment of the expenses of rebuilding leaky rental property.
The last word (hopefully) on taxation of rentals. Reader feedback keeps coming about the taxation of rental properties. So I’ve decided to go to the horse’s mouth, Inland Revenue. But first, a typical email on the subject…
Q&As: A landlord’s nightmare; Credit cards v eftpos; Optimism, pessismism and oil prices.
Let’s keep that chewing gum money. Please forgive us, Dr Cullen, and don’t take away our chewing gum tax cut! I know some of us have been scathing about it. As you said recently, “I have noted that people have said they don’t really think it’s worth having. If people say that, then of course they may find their wish has been granted. Be careful what you ask for, or you may get it.”
Views on negative gearing are poles apart. Negative gearing is like the death penalty. People feel strongly both ways about it, judging by reactions to my last column. In that column, I wrote that negative gearing — which occurs when a landlord makes year-by-year cash losses on a mortgaged property — is becoming more common. This is mainly because rents haven’t risen nearly as fast as house prices.
Negative gearing may come back to haunt you. Many landlords say they don’t mind or even like to be negatively geared — making year-by-year cash losses on a mortgaged investment. But it never looked all that appealing to me. And recently I heard a rather compelling argument against it.
Q&As: Should newly separated woman buy a house or rent?; Our total tax rate depends on whether we spend or save. Plus: End of year message.
Q&As: $29,000 rental in Gore not the thing for a risk-averse man; More on tax on a second job.
Q&As: Who gets the money when mortgage rates increase?; 2 Q&As on whether the tax rate on second jobs is fair.
Q&As: The pros and cons of self employment and income splitting; Comparing shares with property is tricky; How movements in the dollar affect investment in international share funds.