PHOTO: MONIQUE FORD/STUFF – About 40 per cent of landlords are claiming tax losses each year, Inland Revenue says.
Rents could rise when landlords can no longer get a tax break on loss-making rental properties, officials have warned.
The bill that introduces ring-fencing of tax losses for rental properties is likely to get its first reading on Wednesday.
At the moment, investors can use losses on rental property – if the rent earned does not cover costs – to reduce the tax they pay on their other income.
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