What’s The Tax Benefit Of A Negatively Geared Property?

When we’re talking about investing in property, there are two ways the property can be structured.

It can be:

  • positively geared, meaning that it’s generating cash flow and income
  • negatively geared, meaning that the expenses are greater than the income you receive from that property

With a negatively geared property, you’re going to have generated a loss, and that loss is then used to reduce your taxable income and increase your tax refund at the end of the year.

Another great advantage with negatively geared properties is the use of depreciation.

Depreciation is the write-off of the cost of the assets and the building itself. This can be claimed over time and can increase your tax refund.

The laws around depreciation did change recently, so it’s important that you get the right advice. I suggest speaking to a quantity surveyor.

It’s a good idea to come in and have a chat to myself or one of the other property specialists here at Paris Financial, and we’ll be able to make sure that you’re structured correctly to get the most out of your properties moving forward.

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