Kandila...that is such an old argument, and not applicable today or for the past 5 years or more
....years ago when the tax rate jumped to 40-50% at an income of 50,000(cannot be bothered to check with the exact tax rates) was when the higher income earners opted for the negative gearing to reduce their tax
since the tax rates have changed so much in recent years you can earn about 150,000 roughly averaging 31% tax rate... very similar to the tax rate for a company....at 30% sure the incentive is there for the higher earners over 200k and above.... but they can do the same thing with shares...not just margin loans...you can borrow 200k from the bank to invest in shares and the interest is deductible..... same to for a business.... so why are some claiming that property has an advantage ??? it does not...all have the same benefits....
