Negative Gearing, what is it?

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>>1761164
>buy house
>rent it out for less than the mortgage payments
>use the fact that you're losing money on a house to pay less tax
>sell house for more than you bought it

>>1761179
Awesome, thanks.

This is the best explanation I've heard yet.

Short and to the point.

>>1761179

So why are the gains on the house being sold at a profit taxed?

>>1761205
because there are laws in place that grant significant capital gains tax discounts when selling an investment property that was negatively geared for over 12 months

negative gearing only works in countries that have passed laws enabling it, countries do that to stimulate real estate investment

>>1761179
>>1761206
god bless,
should i do it with all my houses? CA here

>>1761215
i don't know the laws in CA, i was talking about how it works in australia

in australia you get to claim the rental losses as a deduction on your income tax (always) and you get a 50% discount on the capital gains tax (if it's been negatively geared for the past 12 months at least). it's not a no-brainer, but it tends to work in fast-growing markets.