Hi,
I got a question if I my taxable income is 220k and I get deducted in taxes is 65k and I got a investment property with deductions close to 20k how much of those 20k I spent in my investment property will I get back from the tax applying the negative gear.
thanks.
Assuming those are deductions and not cost base, marginal tax rate (highest tax rates you are paying) x the loss.
Depends on what you mean by 'investment property' and 'deductions'.
Generally, negative gearing is when an incoming producing asset has more expenses than income, a loss, and the loss is used to offset against other income. Rental properties are a common example. The tax saving of a negative geared property vs not having a negative geared property, would be your marginal tax rate x the loss.
Hi again,
Thanks a lot for responding. This is great. Now sorry but I am a bit silly when it comes to numbers so assuming those 20K I am referring are proper expenses so If I incurred in a loss so based on my scenario what would the formula I can apply to get an idea how much tax saving will be.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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