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  • Profile photo of aarh33aarh33
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    @aarh33
    Join Date: 2008
    Post Count: 2
    February 19, 2009 - 12:50 pm
    Jaffasoft wrote:
    duckster wrote:
    For example on a 30% tax rate you actually lose 70% to get back 30% for negative gearing.
    for a $100 lose a week you get $30 dollars back

    For a positive gearing you earn 100% and lose 30%
    For $100 earned you pay $30 in tax but earn $70.

    Thanks Duckster that's the best explanation of positive cash flow verses negative that I have seen. So simple and easy and can see clearly what happens on both sides of the fence!

    i agree that is an excellent explanation of positive vs negative gearing. ive always thought positively gearing made more sense in investing. but ive been told by many higher income earners that it is better to negatively gear so they can get the so called tax break.

    using your example is there a way as a high income earner to have a tax rate of 30%, will this involve the high income individual to have a company business that invests and positive gears properties instead of him/her self?

    i know that company's are taxed at the rate of 30% only

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