Negative Gearing
外汇网2021-06-19 13:59:33
90
Borrowing money to buy an investment asset without receiving enough income from the investment to cover the interest expenses and other costs inolved in maintaining it. Depending on the investor's home country, the shortfall between income earned and interest due can be deducted from current income taxes. Countries that allow this tax deduction include Canada, Australia and New Zealand.
Negative gearing most often occurs in rental properties, where the rental income received isn't enough to cover the interest costs on borrowings plus expenditures toward property maintenance and upkeep. Negative gearing only becomes a profitable venture when the property is eventually sold, and a prequisite is that property values are rising, not falling or holding steady. Many investors who speculate this way will purposely seek out negative gearing for the tax deductions in the hope that they will make a profit when the property is sold for a capital gain. Investors considering this type of arrangement need to have the financial stability to fund the shortfall out of pocket until the property is sold and the full profit can be reached. Also of utmost importance is that the interest rate is locked in from the beginning or, if the borrower's interest is calculated on a floating index, that pvailing rates remain low.
标签:
- 上一篇: Nontaxable Distribution
- 下一篇: Box Size
随机快审展示
推荐文章
- 黑马在线:均线实战利器 8729 阅读
- 短线交易技术:外汇短线博弈精讲 4065 阅读
- MACD震荡指标入门与技巧 4194 阅读
- 黄金操盘高手实战交易技巧 4541 阅读
- 做精一张图 3300 阅读
热门文章
- 港币符号与美元符号的区别是什么啊? 25004 阅读
- 我国各大银行汇率为什么不一样啊? 15129 阅读
- 越南盾对人民币怎么算的?越南盾对人民币汇率换算方法是什么 10282 阅读
- 百利好环球欺诈,不给出金,无法联系。 9807 阅读
- 黑马在线:均线实战利器 8729 阅读