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Tax Benefit Offered by Negative Gearing

Negative gearing many people have come across this word and have a hazy idea about what it is like but they are still confused about the concept of negative gearing. Well here you will get a clear picture about what negative gearing is all about and what is the situation when this arises. First of all it is very important to know that negative gearing income when a person is dealing with larger amount of money and mostly it comes in real estate business. Now coming on to how it occurs and what it is. For instance suppose you have taken a lone or you have mortgage something and taken money from the market to buy a property or asset then you are liable to pay the interest amount on the loan that you have taken from the market or a bank. A particular interest amount you are liable to pay and when at the time of repaying the loan amount and the interest amount if the asset you have purchased is not enough to cover up the interest and the loan money then that is the situation which is called the negative gearing as you cannot take cover up the loan and interest amount also from the asset you bought. Put simply, negative gearing is a tax benefit offered to investors on their borrowing costs – be it for property, shares or bonds. If your borrowing costs exceed the revenue gained from your investment, you are entitled to claim those losses against your total income. The benefit of gearing is that it allows you to own investments that would normally be out of reach, giving you the opportunity to make a greater return on your outlay. For more information visit this link: - http://negative2positive.com.au/

Tax Benefit Offered by Negative Gearing  

Negative gearing is a tax benefit offered to investors on their borrowing costs – be it for property, shares or bonds.

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