Negative Gearing and Property

Our expertise and experience in dealing with a large property investor client base will ensure that we can confidently assist you in understanding and commencing on your path to using this well established wealth creation strategy to build long term wealth.

Negative Gearing

Negative gearing is a form of financial leverage whereby an investor borrows money to acquire an income producing investment property and expect the gross income generated to be less than the costs of owning and managing the property.  Such costs include depreciation and interest charged on loans.  Therefore, the primary benefit of a negatively geared investment for tax purposes is measured by the resulting tax savings it produces to the sole owner or joint owners.

The real benefits of negative gearing are only realised when you combine the correct tax and financial advise with a suitable property in the right location, funded by the most appropriate loan. You should always seek expert advise and make sure the purchase is within your budget and one that is expected to deliver long term financial benefits as well as been supported by annual taxation benefits.

Tax Variations ( PAYG Withholding Tax / Sec1515 )

If you have an Investment Rental Property which results in a substantial annual Net Rental Loss and you would normally recieve the tax benefit by way of a sizeable tax refund at the end of the financial year, when lodging your tax return we can prepare and lodge a PAYG Withholding variation on your behalf.

This results in less tax being deducted from your wage during the year, therefore your net wages/salary is greater, which can help support some of the cash flow requirements of maintaining the loan repayment or annual running costs of the property.

Depreciation and Building Write-off Allowance Schedule

If you need or would like to have one prepared for a property you have built, purchased as new, or near new, we recommend that you have a proper set of Tax Depreciation compliant schedules prepared by a licenced Quantity Surveyor.

These schedules will provide the necessary information required for the preparation of your taxation return with a rental property. It will also ensure that you maximise your tax deductions for the investment rental property.

The following list of Quantity Surveyors are provided purely as guide for your assistance.