hi guys,
i have a really annoying problem which i’m sure a lot of you face!!! ok, i have no investment properties, only my PPoR. I have just started a new job in the highest tax bracket!!!
is there any way i can avoid soooooo much TAX???
This tax man is killing me, so please help me before I am buried!!
]Thanks
Karan[]*****
Please reply to [email protected]
*****Hi Young,
Reduce the income is a very effective way to pay tax less. But…..Regards
Julian []THERE IS ALWAYS A BETTER WAY!
Hang on – if you’re earning a salary in the highest tax bracket, it means you’re making money!
Why are you getting buried? You’re only ([
] paying tax on every dollar you earn over $60,000 at 48.5%. That means you get 51.5 cents in the dollar back in your pocket.Someone who’s in a lower tax bracket will be taking home less money that you are?
Focus on getting more passive income, rather than worrying about reducing your tax. If you’re paying tax, it means you’re making money!
Cheers
Elysium-MDIY Residential Property Settlements in WA – the book coming soon! When I can get my act together…
what i forgot to mention was that the expenses are also phenominal…such as private schools for 2 children….
*****
Please reply to [email protected]
*****Dear Karan,
You were saying couple of weeks ago that you are 15 year old and now talking something else. Did I forget you or you are different person? [?][?]
Cheers
[]
PropertyGuRu
I want to be billionaire! [] to *PG*
you are right I am 15!
but the truth is that the mail that i posted wasn’t actually for me. It was for a frend of the family who was asking me this question, and i posted it on as i was takin bout me!!!
i didn’t think it was that bigga deal, so i’m sorrykaran
*****
Please reply to [email protected]
*****Hey Karan
It would have been better if you stated in your post that it was about a friend.
It is your friends choice to send the kids to the private schools.
If there is any equity in the PPOR (which there should be unless it was bought just recently) then there might be an option to purchase an IP. It would have to be a neutral one though, that contained lots of depreciation if tax saving is the issue – not that that is the best reason to invest.
I suggest your friend writes down his/her situation and talks to a mortgage broker to see what can be done. I believe there are also ways with trusts etc. that you may be able to turn after tax income (like school fees etc.) into pre tax income. So talking to a competent accountant is also necessary.
Failing that, cut back on the ‘discretionary’ expenses.
Cheers
MelYou could “salary sacrifice”…….. or pay more into your super fund………or if you had “negative geared ” properties (on paper) you would recieve some of the tax you have paid back as a refund.
Mopsy[
]i’d be going for a neutrally geared property. fairly easy to find (not as easy as neg though) but once found can wipe out your personal tax.
enjoy
shaunLead, Follow or get out of the bloody way
you could swap PPOR’s with a friend and rent eachothers’ for a while, then your PPOR becomes a negatively geared IP with all the tax benefits. but you don’t get to live in your own house. Hm. Unless you then house-mind eachother’s houses for extended periods…hmmm…getting into dodgy territory here. But the first part, i know people who have done that.
Hi Young Learner,
What Mini is saying is right…
the common term used is “House Swapping”
Cheers,
sisTax is something that is there and usually cutting that down means your losing money anyhows as you get a discount in tax if you have a negative gear property. Still losing money.
Just curious young.learner whoever is having that high salary read the book 0-130 properties in 3.5 years? Cause theres some helpful tips in that book itself. Though IMO for me , negative geared property is a bigger loss even though im gettin a tax cut. But hey it may work for u in another means..
Goodluck and let us know how u manage ur tax break. []What I learnt yesterday, I know better for tommorrow – Dean
ok thanks a lot guys, i will deffinately pass on the idea of “house swpping” by Mini. i have a feeling that my friend won’t go for it though…
not as i said he does have two kids at a crucial point in their studies, and probably wouldn’t be able to cope with the change of houses.I was wondering about the idea of neutral geared properties, I know that SIS has talked about it and if someone could pls explain how it would be benificial!
Thanks
Karan*****
Please reply to [email protected]
*****Hi Karan’s Friend,
“i have a really annoying problem which i’m sure a lot of you face!!! ok, i have no investment properties, only my PPoR. I have just started a new job in the highest tax bracket!!!
is there any way i can avoid soooooo much TAX???
This tax man is killing me, so please help me before I am buried!!!”“what i forgot to mention was that the expenses are also phenominal…such as private schools for 2 children….”
I wonder if your friend is blaming the ‘taxman’ for some of his problems as a means of covering for excess largesses in his/her personal life. It is often said that our spending habits increase in line with any salary increases we may have.
I suspect that your friend needs to take a couple of steps backwards and really analyse what is happening in his/her life. They may well find that with some careful anaylsis of their spending behaviours that it isn’t the taxman that is actually conducting the bloodletting.
My advice, analyse spending habits, check expenditure and income, adjust where necessary, identify surplus cash and/or assets and if able to start an investment program to suit.
Hope this help.
Derek
[email protected]I have to say I agree with Derek in principal. It always amazes me that people in the high tax bracket that I speak to are never looking at the finance situation themselves and considering making any “lifestyle sacrifices”….. I would suggest the following: (MY OPINION ONLY)
1. sit down and go into learning mode to find where all the money is leaking out of the monthly budget.
2. make a list of necessities (Payments that must be made), and luxuries….
3. cut a few of the luxuries out and see how much money is potentially saved.
4. list all dept ammounts and minimum repayments for each and work out a priority list as to which one can be paid first.
5. add 10% of nett monthly income to the fastest to be paid off and pay all others at the minimum amount.
6. as each bill is paid off …. add that minimum monthly and the 10% net montlhy income to the next one up the chain.
just food for thought anyway.
Cheers,
Kiwi[8D]
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