One of the most common subjects I am asked about as an accountant in public practice is Negative Gearing. Over time the expression has become a term connected to smart investing. Recently politicians have made it sound the scourge of the economy and a tax scam used by wealthy tax dodgers. So what does it mean and what should we do?. “Negative” is just the term used to describe an investment, typically a rental property that loses money. “Gearing” is the term used to describe borrowing money to increase the amount invested. Our tax system adds together all of our income and we pay tax on the net result. So “Negative Gearing” is not a dodgy tax scam, it is using borrowed money to … Continue reading Negative Gearing – What’s all the fuss?