Negative Gearing | Emini Futures Alerts Trading Room

Negative Gearing 

Using borrowed funds for the purchase of an investment where the cost of borrowing exceeds the return obtained from the investment. The practice can have tax advantages for investors on a high marginal rate as negative net income can be offset against income gained from other sources. Negative gearing can apply in the case of borrowing to purchase shares or managed investments where the tax advantages and potential for long-term capital growth are an attractive combination.