Navigating Negative Gearing & Tax Deductibility

Tax deductibility refers to whether costs associated with an investment property, such as interest, rates, property management fees and repairs, can be claimed against rental income.

Selecting Turn Off Tax Deductibility, means these deductions will not be applied.
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Negative gearing occurs when deductible property expenses are greater than the rental income, resulting in a loss.

The Negative Gearing Eligibility option determines whether this loss can be applied against other income.

If you select No, the property may still have tax-deductible expenses. The resulting loss simply won't be applied against other income.
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If the property is not eligible for negative gearing, select No under Negative Gearing Eligibility.
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Not sure? Select Unsure and Quickli will help determine the eligibility based on your client scenario. Sample here 👇
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​💡 Good to know: For Investment loans, you generally don't need to turn off tax deductibility just because the property is ineligible for negative gearing. The investment property may still have tax-deductible expenses.
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Quickli replicates how each lender treats these scenarios in their calculator. Depending on the lender, an Investment loan marked as ineligible for negative gearing may be treated using neutral gearing or limited tax deductibility.
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📝 Note: The treatment can vary depending on the lender and the individual scenario.
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If you have any questions about this you can reach out to us in the chat box at the bottom right corner of your screen.