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negative gearing explained in three minutes meet George letamp;#39;s say in this hypothetical scenario that George earns an annual salary of ninety thousand dollars now of course George has to pay some tax on that and his tax payable is 21 517 but George has an investment property and that investment property gives him Thirty one thousand two hundred dollars per year in rental income however George has to pay all these expenses in return for holding that investment property and letamp;#39;s say those expenses in total end up being fifty one thousand two hundred dollars so George has made a cash flow loss of twenty thousand dollars on this particular property however what happens to that twenty thousand dollar loss well it gets added to his taxable income so that means his taxable income is the ninety thousand dollars he still earns that itamp;#39;s not as if you got a pay cut itamp;#39;s the ninety thousand dollars minus that twenty thousand dollar cash flow loss which means that i
