Then there are policies like negative gearing, a tax concession that allows you to claim a deduction against your wage income for losses generated by any rental properties you own. (Australia and New Zealand are the only countries in the world to hold such a policy.)"
Canada has this policy, I’m pretty sure. If you earned money from one source (including wages) and also lost money on another venture that would normally be a source of income (including a rental property operated as a sole proprietorship), the sum of your earnings minus your losses, is your net income for tax purposes.
I may be applying this policy myself this year - we had to replace the furnace at the house we rent out, which cost probably two years worth of rental profits on the house.
In addition, Australian homeowners are entitled to a capital gains tax discount of 50 percent once the property is sold.
Canada also does this - capital gains, including on the sale of a rental property, are taxed at 50 percent of the rate of other income. Capital losses, similarly, you can only claim half of, not the whole loss, as you can for other non-capital business losses.
