Are You Claiming Too Much Tax?
By DFJ Real Estate

Negative gearing occurs when the expenses associated with your investment property exceed the income it generates, resulting in a financial loss that can reduce your overall tax payable. Although you may be making a loss in the short term, many investors consider the potential long-term capital growth of the property to be far greater than the temporary income loss.

If you are interested in maximising your tax savings through negative gearing, it's essential to seek professional advice from your accountant before June 30. By assessing your overall income, tax paid, and expenses, you can determine if there are any actions you can take to put more money in your pocket come tax time.

If your investment property is positively geared and you want to explore the benefits of negative gearing, consider the following strategies:

• Attend to any necessary repairs, maintenance, or renovations before June 30.
• Prepay insurance premiums.
• Prepay the interest on your investment loan.
• Purchase another investment property.
• Maximise your borrowings on your investment properties while minimising your private dwelling borrowings.