RBNZ forced to scale back bond buying as Govt borrowing dries up; Monetary policy load falls on further lowering mortgage rates via cheap RBNZ loans to banks; Carter Holt stops supplying timber to ITM
A question was asked on twitter that didn't get a proper answer: it was claimed that corporate property owners can and still will be able to claim interest expenses against tax, and that one reason why most property investors don't run their operations as registered businesses is to avoid capital gains tax. Is that correct? Secondly, does IRD regard purchasing a property with negative cash flow as an intention to make capital gains?
A question was asked on twitter that didn't get a proper answer: it was claimed that corporate property owners can and still will be able to claim interest expenses against tax, and that one reason why most property investors don't run their operations as registered businesses is to avoid capital gains tax. Is that correct? Secondly, does IRD regard purchasing a property with negative cash flow as an intention to make capital gains?