Property has negative gearing. What do shares have?
The most common tax deductions for share investing
Property investment is incredibly popular in Australia. Much of this has to do with two reasons – the eye-watering growth of residential property prices across most of the country and tax incentives. Negative gearing is a tax strategy that has reduced the tax owing by claiming investment-related expenses and depreciation costs.
Equities, as an asset class, also has tax deductions and incentives. If you invest in equities, or any investment product such as managed funds or Exchange-Traded Funds (ETFs), there are deductible costs associated with your investments, on top of incentives such as the Capital Gains Tax (CGT) discount and franking credits.
Here is a list below of the types of expenses and their eligibility for deduction.
It is worth remembering that like with most tax or investing treatments, it is individual to your circumstances. Please seek professional tax or financial advice to understand what is right for you.
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