All Topics / Help Needed! / Personal Tax + IP LOSE + Depreciation calculation methods. Am I correct calculating this way?
Hi, in general, say if I earn $60000 before tax and if my IP lost is $7000 per year (lose from IP due to higher interests and bills) + special building write off say $3500 per year + depreciation allowance on materials and plants say $4000 per year.
Using the formula above, this that mean I only pay tax on:
$60000 gross income – $7000 (lose from IP due to higher interests and bills) – $3500 (building write off) – $4000 depreciation allowance = Total Taxable gross income of $45500?
Is the above method correct? If not, what is the correct method of calculating?
Thanks Heaps
Yes in essence the calculation is correct.
Of course gross rent needs to be added to the PAYG income and interest deducted but the figures will be the same.
Richard Taylor | Australia's leading private lender
housegoodies wrote:Hi, in general, say if I earn $60000 before tax and if my IP lost is $7000 per year (lose from IP due to higher interests and bills) + special building write off say $3500 per year + depreciation allowance on materials and plants say $4000 per year.Using the formula above, this that mean I only pay tax on:
$60000 gross income – $7000 (lose from IP due to higher interests and bills) – $3500 (building write off) – $4000 depreciation allowance = Total Taxable gross income of $45500?
Is the above method correct? If not, what is the correct method of calculating?
Thanks Heaps
New taxable income = $60,000 gross income + (rental income – $7000 -3500 -4000)
if rental income -$7000 -3500 – 4000 equals a negative figure it is a net property loss that is subtracted from gross wage
if rental income -$7000-3500 – 4000 equals a positive figure is is a net property income that is added to gross wageon the tax return form there is a place labelled as net property loss / income
You must be logged in to reply to this topic. If you don't have an account, you can register here.