Taxation Law & Practice

Identify and evaluate key arguments both for and against retaining these tax
concessions if housing affordability is to be achieved.
In your response you must explain what is meant by negative gearing and how capital
gains arising from property investment are treated. You should refer to sections of
legislation, tax rulings and cases where relevant.
Assume Jai’s goal is to take advantage of negative gearing opportunities and receive the
most favourable tax treatment. Advise Jai which of the three options – a), b) or c) -
would best achieve this goal. Give reasons for your answer.

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