Tax

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igreen
Participant
@igreen
Join Date: 2011
Post Count: 14
March 14, 2011 - 10:42 am
I have a negatively geared property.
When do you claim your tax benefits on a negatively geared property? Is it annually / quarterly / monthly. Annually is straight forward what about quarterly and monthly. Do I have to pay the tax agent fees on a monthly / quarterly basis based on the frequency I am claiming tax benefits for the negatively geared property.
Regards
Stephen
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
March 14, 2011 - 12:10 pm
Hi Stephen
This will depend on whether you are employed or self employed, the entity you purchased the property in i.e Trust / individually and to a certain extent you own cash flow requirements.

Assuming you would like Tax adjustment on a regular basis and are on a PAYG basis i would be undertaking a Depreciation schedule immediately (if not already done) and then submitting a Tax variation to the ATO. Once this is approved you give this to your employer and he will deduct a lower rate of Tax based on the adjustment to your Tax coding.
This way you will receive in each pay packet.
How you pay your tax agent is again between the 2 of you to decide but most of us pay our Accountants / Tax Agents annually once we lodge the Return.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
March 15, 2011 - 7:32 am
Stephen – you can claim the benefit from day one and dont need to wait till the end of the year…; i think it was called – Income Tax Withholding Variation – previously known as a Section 22?? variation.
When i had my first IP, i had my accountant do the above…but once i started to build on my IP portfolio and went self employed it got a bit to complex for my accountant ahah – But speak to your accountant about it; as the rules could have changed in the last few years.
Regards
Michael
Mick C | Shape Home Loans
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Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
March 15, 2011 - 10:48 pm
The process of receiving early tax deductions is in place under section 15.15 of the tax act. If you know your situation and are handy with a calculator pretty easy to do. Have been completing these for 10 yrs.

Necessary form for wage earners http://www.ato.gov.au/individuals/content.asp?doc=/content/00188348.htm
Self employed and income from other sources supplement http://www.ato.gov.au/individuals/content.asp?doc=/content/00188344.htm