Is negative gearing halal?

Negative gearing is a tax outcome, but the structure that produces it is an interest-bearing loan - which is where the Shariah question sits.

What it is. You borrow to buy an income-producing asset; the interest and holding costs exceed the income; the loss is deducted against your other income, reducing tax. The strategy relies on capital growth to make up the shortfall.

The deduction is not the issue. The interest that creates it is riba under the standard analysis, and the analysis is unchanged by the tax treatment.

Islamic property finance structures such as ijara and murabaha produce rent or a disclosed mark-up rather than interest, and are treated differently for both Shariah and tax purposes.