What happens with negative gearing half way through a fics year?
Say i see now i have earnt 60k so far for the year. If i go and buy another -CF IP right now, settle in 1 month. What is the maximum/ total that i can claim off my taxable income? in it looses $20/ week x 2 months left = $160 + $1000(yearly costs) x .20% = $360
Not much?
Does that mean that i can only reduce my taxable income by $360?
Am i missing something in -CF? I am trying to see how it works and its benifits.What is the best way to reduce my taxable income at this stage of the year with property?
Hi vyaw2003,
You can claim the property expenses on a pro-rata basis. I am not sure what .20% is in your calculation.
The other thing you can look at is depreciation.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
sorry, i meant roughly 20% of the year left. As a % of rates that were claimable.
I beleive those sorts of expenses can be claimed fully when you incur the expenses. so if you were to pay 12months full rates, then you should be able to claim the full 12months.
However, with some non cash expenses such as borrowing costs, these need to be aportioned.
Terryw
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