TL;DR: Negative gearing describes a situation when expenses associated with an asset are greater than the income earned from that asset. Why would someone do negative gearing if they are making a loss? Two words: tax deduction But how does the tax deduction work?
What is negative gearing?
What is negative gearing?
What is negative gearing?
TL;DR: Negative gearing describes a situation when expenses associated with an asset are greater than the income earned from that asset. Why would someone do negative gearing if they are making a loss? Two words: tax deduction But how does the tax deduction work?