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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10172
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If I have approximately $13000 in negative gearing on my

Customer Question

Hello.
If I have approximately $13000 in negative gearing on my investment property and I earn approximately $90000 from my employer, how do I declare my income to Centrelink who ask for my income and my NET investment losses?
If I declare $90000 to Centrelink, I still receive approx $180/fn in FTB...if I then declare $13000 investment losses (which isn't the net amount) that makes my income $103000 which causes me to lose my $180 FTB. OR do I deduct $13000 from my income of $90000, making my income $77000, and still declare $13000 net investment losses, which would leave me in the same position for c'link purposes, ie a taxable income of $90000?
Confused++
Of course the $13000 is an estimate of the gross investment losses, not the net losses so I understand this figure will change.
Just not sure how I go around providing c'link with the appropriate figures, in the hope that I can still receive some FTB.
Submitted: 6 months ago.
Category: Tax
Expert:  Lane replied 6 months ago.

OK, still don't see you coming back in. I'll assume that you do indeed have a certificate (For Holders of Qualified Mortgage Credit Certificates Issued by State or Local Governmental Units or Agencies) .

...

Yes, if you work through the form and end up with line 9 (Current year mortgage interest credit) that's less than line 3 on the form ( a positive number) you apply this to 2016