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Property investors easy target: APIA

Monday 4th of August 2014

He has written an opinion column, saying that landlords are at a tax disadvantage compared to other sectors since their ability to claim depreciation was removed.

The Financial Services Council has launched a campaign, asking for tax reductions on long-term savings. It has said that rental property owners are unfairly tax advantaged compared to people saving in term deposits or KiwiSaver.

APIA president Andrew Bruce said that was not true.

"In 2007 the then Deputy Commissioner of Inland Revenue Department, Robin Oliver was asked by a Government Select Committee if there were tax advantages for investments in rental housing. Mr Oliver's response was '...the short answer is there is none. Rules about expenses for deducting costs such as interest, upkeep and maintenance, as well as paying tax on income were the same for investments in shares or anything else. In fact under the housing case, the capital gains boundary is brought back a bit'. Since then in the May 2010 budget the Government withdrew depreciation on buildings as a deductible expense."

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