Why can't any negative geared losses be quarantined?
The property owner will be denied deducting the loss from his/her other taxable income in a particular year, but will be able to claim the loss when the property become positively geared in future years. The Tax Office will not be paying out so much in refunds but the property owner will eventually get their deduction. If the property is sold prior to the losses being fully recouped, then the loss can be deducted from any capital gains tax calculation.
