The tax reforms the government is proposing for residential investment properties should go to the heart of the housing crisis and tip the balance of power in the market away from speculators and more towards first home buyers and long term investors. This will be achieved by extending the term of the Bright Line Test for taxing capital gains on housing and by removing the tax deductibility of mortgage interest payments on residential investment properties. Extending the Bright Line Test is not a surprise, but few thought the Government would have the guts to remove mortgage interest deductibility because this won't ... (full story)