Andy T
214 posts
The stock is being rerated. See you at $65+ today and $100 next week else I delete my account. $IREN
Maybe an example will make it more clear. Buy a house for $500k $25k interest per year $15k rent per year (for simplicity: assume no other expenses, and that it's an interest-only loan, no stamp duty etc) Net annual loss: $10k/year Then 10 years later, sell for $600k Capital gain $100k. Total profit before tax: $0. As an individual, the CGT discount means the gain is only taxed as $50k. But the losses are deducted fully against your ordinary income. At 47% bracket: Net result: $100k of deductions (reduces tax payable by $47k over the years) and then tax on the gain is 47% of $50k. Net profit after tax: $23,500 profit. As a company, the interest is deducted at exactly the same rate as capital gains income. It balances out exactly. Net profit after tax: $0
ATO Australia, high-wealth individuals legally reduce their taxable income to zero using property by combining negative gearing, capital gains tax (CGT) discounts, and tax-free equity extraction. This allows them to minimize their tax burden while actively building multi-million-dollar property portfolios High-income earners reduce their personal taxable income to zero using property investments and other deductions People are upset that these people will now pay tax
