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🏠 Negative gearing
- Thread starter Conza
- Start date
Patrick Danneskjold
LA Member
The Australian tax system is based on a worldwide income tax system. That means all income from all sources is included in assessable income. No differentiation is made between the type of income or its source. From income any deduction incurred to gain said income is deductible (so long as it is not capital, private or domestic in nature). Just like income, the reason for the deduction is not tied to its source. This is the foundation for "negative gearing" (a term not defined in tax legislation but mostly just comes from financial planners). It applies to any asset that you obtain a loan to get (residential investment properties, margin loans for shares, bitcoin or artwork, for example). It's a perfectly natural operation of the tax system. Taxation is theft.
What do you mean by justifiable? If it reduces my tax then it is justifiable by me. Is it logically consistent? Patrick has provided an answer to that. Can the government justify it? - they can justify anything they want since, after all, they seem to claim ownership to everything.Justifiable, unjustifiable?
What are your thoughts?
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