Take extreme care when claiming negative-gearing deductions
The tax commissioner has “significantly tightened” his administration of claims for negative-gearing deductions, warns Paul Banister of Grant Thornton, writing in the Australian Financial Planning Handbook 2012-13, published by Thomson Reuters.
Banister urges investors to take extreme care when claiming negative-gearing deductions.
Make sure you have the evidence to support your claims, he says.
As previoulsy discussed, a property is negative geared when there is a shortfall between the rental income and the deductible expenses (including loan interest).
The shortfall is deductible against your other income.
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