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Negative Gearing

Is Negative Gearing right for you?

The short answer is – let’s find out! Whether you’re new to negative gearing or are looking for assistance when purchasing new property, Taxplan 365 can help you determine whether you can borrow funds to acquire the investment, and help you understand tax implications as well as tax deductibles and costs associated with negatively geared property investment.

The good news is negative gearing is not only available for rental properties. You should consider it for other income-producing investments as well. This could be shares and any managed funds where your expenses to maintain the property, shares and funds (and the mortgage interest) exceed the income generated. If the investment is not for your business, then the loss may be offset against your other assessable income. The tax benefits would then depend on your marginal tax rate.

Negative gearing is a strategy many people use to create wealth because it makes it possible and easier to invest in property or shares that would otherwise be out of their reach.

To find out whether it’s right for you, call Steve on 043 0147 or send an email to book your initial consultation.  

The Risks of Negative Gearing

For negative gearing to be beneficial, you need to have a reliable income as well as have some money left over once you’ve made all your regular expenses. You’ll also need to retain the investment property long-term, even when the market prices fall. It’s only when the prices are trending upwards that you’ll see a profit.

Negative gearing can be a risky business because it can also magnify your losses. Another thing is most loans for investments are interest only. This means if you take an interest-only loan, you could be paying different amounts of money over the life of your loan.

If you’re considering gearing, we’ll discuss whether you can afford it so that we minimise the risk of you being forced to sell too soon at a price that is too low for you.

To understand the risks and find out whether it’s right for you, call on 0414 928 352 or send an email to book your initial consultation.

Rent Property Tax Management

If you own or plan to purchase an investment property, we’ll manage your rental property tax records for you. We’ll minimise the headaches and frustrations associated with rental management and records keeping.

Our team will keep your purchase and sale records and all associated information in one place to make it easier when it’s time to lodge your annual tax returns. Our system will allow us to work with you to simplify analysis of potential investment property purchases.

Rent Management Involves:

  • recording your rental income and expenditure

  • recording the real estate agent’s rental summaries

  • tracking mortgages and interest and bank charges

  • tracking your car mileage for rent collection and property inspections

  • summarising the information for your tax return

  • recording for multiple properties

  • calculating depreciation of rental furniture and fittings

  • calculating building allowances that are tax deductible

  • recording the costs and any loans associated with purchasing, holding and selling the property

  • recording purchase, sale and improvement details of the property so you don't get caught without them


To find out more about negative gearing, contact TaxPlan 365 for a consultation.

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