What if I don't earn an income anymore? and Negative gearing is paid out from my savings. How will I handle it? does it carried forward?
Rent will be counted as income so my current understanding is that if you receive 20k in rent and have 5k in deductions your taxable income will be 15k.
Your question is lacking vital information. Do you still own your IP and available for rent but you have a net rental loss and no other assessable income?
Depends why. 1. Loss of job or retirement. Yes it would carry forward a tax loss 2. Leaving Australia and becoming non-resident. Yes but also factor in loss of the 50% CGT discount too. If its not rental income but shares this could trigger further tax concerns as CGT may be triggered on a change of residency. (This does not apply to property) You would continue to lodge and the loss rolls fwd from year to year. It can offset CGT profits in a future year or other income if it restarts. Otherwise it is lost only on death.
Example, rental $30k a year, deductible loan interest $20k depreciation $10k insurance and rates $3k So this property is making a loss, where do I carry this loss? There's no other income.
so you do have assessable income for the year, but your deductions exceed this. You accumulate the excess deductions as tax losses each year. You may carry these tax losses forward to deduct against future assessable income when you get another source of income or you become positively geared.
