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Landlords angry at tax loophole for social housing
Publisher/s
STUFF NZ
Author/s
Miriam Bell
Abstract
A surprise exemption from interest deductibility rules for landlords with properties used for social housing has angered some investors who claim it will tip the scales against working families.
This week the New Zealand Government announced the details of its controversial new policy which removed people’s ability to deduct mortgage interest on rental properties from taxes.
Most of the focus was on the exemption for new build properties, which allows deductions to be claimed on properties that received their code of compliance certificate on or after March 27, 2020 for 20 years from when the certificate was issued.
But the policy details, which were not final as they were still going through the parliamentary consultation process, also revealed an unexpected exemption for emergency, transition, social, and council housing.