Property investment tax, done to the cent.

Negative gearing means your deductible costs exceed rent, and the loss reduces your other taxable income. It's a cash-flow cost offset by a tax saving at your marginal rate — never a strategy on its own. It only makes sense if you expect capital growth to exceed the cumulative after-tax holding cost, and if your cash flow can absorb the shortfall through a rate rise or vacancy. We model exactly that before you commit.

If the property was built after 1987, or has been substantially renovated, almost always yes. A quantity surveyor's report typically costs $600–$800 (itself deductible) and commonly unlocks several thousand dollars of deductions in the first full year. Note the 2017 rule: second-hand plant and equipment in previously-used residential property generally isn't depreciable, but capital works at 2.5% still is.

No. Deductibility follows the purpose of the borrowed funds, not the security. If you redraw $40,000 from an investment loan to buy a car, that portion's interest is private and must be apportioned out for the life of the loan. Mixed loans are the single most common error we correct — and a mistake here compounds every year until fixed.

Sale proceeds less the cost base — purchase price, stamp duty, legal fees, agent commission and capital improvements, reduced by capital works deductions already claimed. Individuals holding over twelve months get a 50% discount on the gain, which is then taxed at marginal rates. If it was ever your main residence, partial exemptions and the six-year absence rule can substantially reduce the taxable portion.

Individual or joint ownership maximises the negative gearing benefit for a high-income earner. A trust can't distribute losses but offers flexibility once positively geared, plus asset protection — at the cost of extra compliance and, in Queensland, different land tax treatment. There's no universal answer; it turns on your income, your partner's income, your risk profile and how long you'll hold.

The income is assessable and expenses are apportioned by floor area and time let. Critically, letting part of your main residence can cost you a portion of the main residence CGT exemption for that period — often more expensive long term than the extra deductions are worth. Worth quantifying before you list.