Negative gearing, quickly
A negatively geared property costs more to hold than it earns, and the loss offsets your other taxable income — here's the short version and where to read the full mechanics.
If your property's costs — interest, management fees, repairs, depreciation — exceed the rent it earns, the difference is a loss. That loss offsets your other taxable income, which is where the "negative" in negative gearing comes from.
The tax benefit only ever covers part of the loss, not all of it, so a negatively geared property still costs you money out of pocket. BrickTrack's Tax Position report shows whether each property is positively or negatively geared in real time, so you're not waiting until June to find out.
For the full mechanics, including a worked example, see Negative Gearing Explained on the blog.
Frequently asked
- Is negative gearing a strategy on its own?
- No — it's a side effect of a property costing more to hold than it earns. It only makes sense if the capital growth or the tax benefit justifies the ongoing loss.
BrickTrack helps you organise your property data so you can work more effectively with your accountant. It is not tax advice.