Providing housing is certainly a service. Then why is it not subject to GST ?
Macron is only politicking. It makes no difference to France whichever side wins.
That was essentially what the Opportunities Party proposed when it was first launched. One could argue that the money saved from not paying rent could be treated as a sort of quasi income and taxed. Ideally the rental value of the property would be ...
As I have argued earlier in this thread I think residential rental income should not be taxable. This, I think, would be a better way of equalizing the taxation of homeowners and landlords.
So over this past year, both myself and my partner have mostly worked from home, as we have done so since 2020. If you work from from home expenses relating to your home, or a portion thereof, would be deductible. However this would would probably not ...
There is a case for rental accommodation inasmuch as some people, for various reasons, actually prefer to rent rather than own there own real estate. The problems arise when these numbers are added to by persons who would prefer to own but rent only ...
They are not being treated as a special case. They operate a business, and interest incurred in deriving assessable income is deductible. For any business. It is questionable whether interest should deductible in the case of any business. But if it should ...
Really – it sounds to me as though you just want to make the government and non-profit organizations the only provider of rental housing. Actually legislating for this – would be a more effective pathway than trying to tinker with tax law to achieve your ...
No. But if a landlord experiences a loss that loss would not be deductible against other income. This would not be the case if rent was not taxable. Of course they would be better off if they made a profit and paid no tax on it; but, who knows, maybe rents...
more enlightened economically than Western countries is what I said. But that's probably not saying much. The West probably lost the plot when they abandoned Keynesianism.
There are numerous examples. Singling out residential landlords was illogical. This is correct. However, this does not mean that interest should be deductible in the case of residential rentals; it just means that it probably should be non deductible in ...
If rental income was not taxable then no expenses would be deductible under current tax rules. Assuming a 33% tax rate such an arrangement would mean a 50% increase in net expense costs.
Actually all the interest should be non deductible. If someone wants to own a property, whether he wants to live in it himself, of whether he wants to rent it out, he should meet the full costs of acquisition, including the interest, himself, and not ...
(China & Russia spring to mind). Why those two particularly? They are two countries which seem more enlightened economically than Western countries, at least now that they have abandoned communism.
"Providing housing to others is an economic activity, even more so if it is a new build." Building a house is a productive economic activity. Renting out after it is built is not. I would not allow interest paid afterward to be deductible because I think ...
Do you regard income generated by shares and bank deposits as the same? Income from share dividends is generated by productive activity on the part of companies. The imputation credit system ensures that the shareholder pays his share, which he receives ...
So they should pay less tax on their rent income by being able to write off the mortgage interest cost of buying up an existing property. I have long been of the opinion that a rental agreement is merely a private arrangement between the occupant of a ...
'New' is not a test. A service is being provided, new or not. If a barbour provides you with a haircut he is providing a service since he is providing you with a new, and hopefully, improved appearance. A landlord is not providing any new accommodation, ...
I think you have a miss apprehension about the treatment of interest payments in tax returns. Loan repayments have two parts including an interest part and a capital repayment part. In most cases loans are structured such that part of the loan is repaid ...
The opportunities party seemed to have the best take on this particular problem: they would not have allowed an investment to proceed unless the investor could put a 100% of the purchase price as a deposit.
Of course, if there was a capital gain tax in NZ, just as there is in many countries, there would a broader tax base and there would be money to spend on nice things. This of course goes without saying. The introduction of any new tax is likely to produce ...
New builds have always had interest deductibility. That was because a new build would have been sold immediately to the subsequent owner. The builder would have deducted interest involved in the house's construction much in the same way that interest would...
I have generally suspected, though I cannot produce evidence, that the rush by boomers to purchase investment properties is probably one factors driving up house prices - it increases the demand for houses. Of course borrowing to make those investments ...
Interest is probably treated as deductible throughout the capitalist world, I doubt if any tax authority, least of all our IRD, is going to to stick its neck out and say otherwise, even if they considered deductibilty to be irrational.
It was was an actual provision in the Income Tax Act. But that was a long time ago, and whilst I haven't really kept up with changes to the Act, I doubt whether that bit would have changed, at least as the first part of your contention is concerned. On the...
"For example, if I borrow money to purchase a business (a capital asset akin to a residential rental), I can claim the interest cost of those borrowings. If I later sell that business, I pay no CGT on any capital gain. In that regard, the return of ...
"Interest cannot be a cost of "deriving income" if that income can be derived in its absence." That is not a valid test. If borrowing is required to fund the means by which income is derived, then that income will not be generated unless that borrowing ...
"Correct me if I'm wrong, but now you appear to be arguing that no interest should be deductible in any business setting? Apart from not agreeing with your logic, that would have serious consequences for investment and ultimately employment." You are not ...
Correct me if I'm wrong, but now you appear to be arguing that no interest should be deductible in any business setting? Apart from not agreeing with your logic, that would have serious consequences for investment and ultimately employment. You are not ...
Income is income That's true of course. But, so what; a capital gain is not income; how can it be; no-one sells capital gains, they sell assets. Income has to have a source. That source is the production and sale of goods and services. All other sources ...
"Interest does not contribute in any way to actual gaining of revenue. " Not true. If a business borrows to buy a machine to produce widgets for sale, the interest on the loan is contributing to gaining assessable income. That's why that cost is deductible...
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