How to Calculate Cost of Negative Geared Investment Property – Video

  • October 5, 2011
  • Tax

Negative gearing allows you to offset the cost of buying an investment property against your other income. The tax savings from negative gearing reduce the after tax cost of buying an investment property. One of the forgotten aspects of negative gearing is depreciation where you can claim a tax deduction for a proportion of the cost of building the property even if you did not build it. It is a non cash deduction and is only added back when you sell the property and have to pay capital gains tax.

Our negative gearing calculator allows you to quickly calculate the after tax cash cost per week of buying and owning an investment property.