 But what is negative gearing? Negative gearing allows landlords to claim tax deductions for the costs of owning a rental property. This usually includes interest from borrowing money, maintaining a property and any fees charged to manage that property. Landlords may be able to deduct up to 45% of any net losses they make, which can be great for landlords but not so great for those of us who aren't homeowners. And the result is that property ends up being concentrated in the hands of a wealthy few.