Inland Revenue has released an "issues
paper" on ring-fencing losses. Revenue Minister Stuart Nash says the
policy is an effort to "level the playing field" between speculators
and investors. Feedback is being encouraged. Submissions must be in by 11
May 2018.
The policy paper says, "The proposed loss ring-fencing
rules will mean that speculators and investors with residential properties will
no longer be able to offset tax losses from those properties against their
other income (for example, salary or wages, or business income), to reduce
their tax liability. The losses can be used in future years, when the
properties are making profits, or if the person is taxed on the sale of
land."
