Ring-fencing of rental losses
Ring-fencing means residential rental losses can generally only be offset against residential rental income — not against your salary or business income.
Since the 2019–20 tax year, a loss-making NZ rental can't reduce the tax on your day-job income. Losses carry forward and offset future rental profits (or taxable gains on sale in some cases). This rule reshaped the economics of negative gearing in New Zealand.
Source: IRD — ring-fencing rules
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