NEGATIVE GEARING

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    Negative Gearing

    Negative gearing has been one of the most commonly used methods of tax planning by wealthy Australians for decades.
     
    When an owner of a new property owner adds:

    • the tax refund created by negative gearing 
    • to the extra tax refund created by Australia’s generous accelerated depreciation rates 
    • and the even more generous capital works allowance 
    • and then adds the rent received to the equation;

     that owner often finds that the annual property and finance costs are largely covered and that no further out of pocket contribution has to be made.

     
    Are you one of the many taxpayers contemplating an investment property but are not exactly sure how the equation would work on the property in mind? 
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