Use negative gearing on rental properties? You may be able to claim a deduction…

Negative gearing involves borrowing money to make an investment, where the income generated from the investment is less than the cost of managing the investment.

For example, you could borrow money to buy a rental property. However, the income you get from rent (after all expenses) is less than the interest you pay on the borrowed money.

Luckily, this net rental loss allows you to claim a deduction “for the full amount of rental expenses against your rental and other income” in your tax return.

Interested? Get in touch via email today, to discuss your tax solutions!

All information was sourced from ato.gov.au