tylvecnegative gearing refers to a lose made from an income...

  1. 5,001 Posts.
    tylvec

    negative gearing refers to a lose made from an income producing asset
    In other words if you hold BHP shares and you have borrowed against that asset you will able to claim a tax deduction.
    The deduction claimed is the interest of the borrowed monies less the dividend recieved. Hence a negative.

    i.e
    $5000.00 income BHP
    Less
    $3000.00 dividend BHP
    Therefore
    $2000.00 is tax deductrable against your overall income


    In this case RMG will not be paying no dividend any time soon.
    I suggest you seek financial help here before you lose your hat and whatever else you have left.
 
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