Hi all,
i’m a bit confused by the whole idea of negative gearing. From my limited understanding, i think it is the extra 100 or 200 a month that the rent does not cover on the monthly mortgage repayments.
Is this right? what else can it be? what tax benefits can it involve?
thanks,
giladWith negative gearing you can apply the loss from your property to other income. So for example say you had a property costing you $200 per month, if you were on the highest tax bracket the tax man would take $100 of every month.
This roughly explains the basic concept (and yes I do know the PAYG tax rates, with the highest being 48%, so my figures might be a little off…)
Rgds.
Lucifer_au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
