Hi Guys,
I a little puzzled. Reading Strategy / common technique – https://www.propertyinvesting.com/strategies/buyandhold tells me the following.
…
We also need to subtract the ongoing income loss that we made each year, which comprises (rental income) – (interest + property expenses)
= ($43,316) – ($51,948 + $15,000)
= -$23,632
What if you negative gear your loss in the last 5 years, can you still subtract the ongoing income loss?Thanks
Kind regards
ptnThe thread you refer to is working out how much profit you've made on a property after allowing for the negative cash flow over the years. This is not part of the CGT calculation. This example has been done to show you that when you sell a property your "profit" is not just sale price less purchase costs, but that you should also be taking into consideration the loss made on negatively gearing it over the years. This negative gearing loss is of course tax deductible in your tax return each year, but you can't double dip!!
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