Negative gearing occurs when tax accountants find that the net rental income after deducting expenses is less than the interest on the borrowed funds.
Basically, the investor ends up with a net rental loss at the end of a financial year.
With the right negative gearing advice, you will be able to offset the total cost of owning property in Perth against assessable income.
This applies if the cost is higher than the rental income. The revenue will only become subject to tax after the rent has covered the cost of acquiring the property.
Here are just some of the typical expenses that can be claimed with negative gearing:
Are you a property owner interested in the best tax planning service available in Perth?
If you’re looking to minimise your tax payments, Ascent Accountants is a certified, Perth-based accountancy firm providing a full accounting and business management service.
Call us on 08 6336 6200 to discuss solutions for your small, medium or family-owned/operated businesses.