Not quite correct. Trading losses and capital losses are 2...

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    Not quite correct. Trading losses and capital losses are 2 totally different things. With property though it 'usually' of a capital nature not trading and that is where the difference is. Negative gearing is effectively offsetting the cost of achieving a capital gain by being able to claim against other income. You can however offset you trading loses against your wages income as long as you have your trading account set up this way. You can set up a trading account for shorter term trading and a capital account for the longer term holds. (even if you trade out in short term in the capital account, these will still be treated as a capital gain or loss, the same applies for your trading account. If you keep the stock for 12 months or more you can't suddenly decide that it is a capital investment and there the capital gains tax reduction applies)
 
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