Negative Gearing

Negative gearing is where the income earned from an investment is less than the costs associated with obtaining and maintaining the investment. The "loss" can be deducted from taxable income.

With regard to rental property, negative gearing occurs when the annual interest payable on the loan used to acquire the property, plus other expenses incurred in maintaining the property, exceed the annual rental income that the property creates.

We are available to advise you on negative gearing practices.