Negative Gearing not just for the Rich

Tuesday, 23rd September 2014

We have talked before about an investor cash flow when looking at negative gearing in my article Does negative gearing an investment property only benefit people on high incomes. This week I noticed an article in the Australian Negative gearing not just the enclave of the rich by Kylar Loussikian.

In his article Kylar points out that the vast majority of property investors taking advantage of negative gearing are ‘mum and dads’ earning less than $80,000 a year, countering the long-held view that the property investment measure was a tax lurk for the rich.

Australian Taxation Office data shows that of the 1.266 million Australians who declared that the rental on their investment properties didn’t meet the interest repayment in 2011-12, 883,325 earned less than $80,000.

More than 70 per cent of people who accessed negative-gearing benefits, where losses on property investments can be deducted from taxable personal income, only owned one investment property. A further 18 per cent owned two investment properties.

I encourage you to read the full article and if you have any questions or would like to know more about negative gearing please contact me