NEGATIVE GEARING. EXPLAINED. Negative gearing happens when the costs of owning an investment, like a property, are higher than the income it earns. For example, if you receive $40k in rent but pay $50k in interest and running costs, you’ve made a 10k loss. If you’re a higher income earner, that loss becomes valuable. You can claim it against your taxable income, which reduces the amount of tax you pay. Someone on the highest marginal tax rate gets a bigger benefit because every dollar of loss re
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61K views · 423 reactions | Negative gearing explained in under 60 seconds. Disclaimer: This is not financial advice and is for educational purposes only. #taxes #property #realestate | Wealth By Michael | Facebook
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Negative Gearing explained in simple terms in under 60 seconds Disclaimer: This video is for informational purposes only and should not be taken as financial advice. Please consult a qualified financial advisor for guidance tailored to your specific circumstances. | Wealth By Michael
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