Cash flow loses again Capital Gains?

Hey everyone - is it possible to offset capital gains with cash flow loses for an IP? Or can cash flow loses only be offset against cash flow gains?

By cash flow I refer to the monthly lose or gain when rent, mortgage payments, expenses etc are taken into account. By capital gains I refer to point of selling an IP.
 
What you are referring to is commonly termed negative gearing. This is when rental losses from your investment property/ies (mainly caused by high interest deductions) contra your other income such as employment, dividends, interest etc.

- Capital Gains (profits made on sale of IP's) are added to your other income.
- Capital Losses (losses made on sale of IP's) are carried forward to be offset against future income years capital gains (profits).


Fletcher Tax Accountants

Please note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice
 
Hey everyone - is it possible to offset capital gains with cash flow loses for an IP?

Yes... and not only that, my understanding is that you can carry forward "cash flow" (or income) losses into future income years. They accumulate year to year and can then be "used" , for example, to "negate" capital gains, such as when you make a profitable sale of an IP.

Hope I've explained that correctly. Sorry if I haven't.
LL
 
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