All Topics / Help Needed! / Multiple Property Cashflow question

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  • Profile photo of PFrankyXPFrankyX
    Member
    @pfrankyx
    Join Date: 2012
    Post Count: 33

    Consider i have 3 properties, property A, B & C. I am currently employed earning a salary that can have a tax variation applied to reduce the tax payable if a loss is made.

    For round figures, consider my taxable income is $100k.

    Property A
    Annual Rental Income – $25,000
    Annual Expenses (incl depreciation) – $50,000

    Loss made – $25,000

    Property B
    Rental Income – $15,000
    Expenses – $25,000

    Loss made $10,000

    Property C
    Rental Income – $20,000
    Expenses – $30,000

    Loss made – $10,000

    Therefore:
    Total rental income – $60,000
    Total Expenses – $105,000

    Total loss made for the financial year is $45,000

    Does this mean, that the $45,000 will come off my initial taxable income of $100,000 and therefore i should only pay income tax on the amount of $55,000?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    yes

    Jacqui Middleton | Middleton Buyers Advocates
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Gazza21Gazza21
    Participant
    @gazza21
    Join Date: 2012
    Post Count: 54

    It also means unless your properties increase in value you only earn $55k a year and if they decrease, even less.

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