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  • Profile photo of MA_NSWMA_NSW
    Member
    @ma_nsw
    Join Date: 2006
    Post Count: 3
    September 13, 2006 - 3:42 am

    Thanks you all for your comments.

    I am trying to get an estimate of tax return based on the negative gearing:

    – Our mortgare now $274000 (purchased $300000, Living in 5 years)
    – Repayment per month: ($1900)
    – Estimate rental cost (council, strata, etc) p/month ($300)
    – Estimate rental income p/month: $900
    Total deficit: ($1300)

    I pay around $15000 tax per year, Can you estimate the proportion of tax I can claim as negative gearing. An estimate will be preferable.

    This property is joint name (myself & wife). My wife works p/t now. Can I claim the deficit from my tax return?

    Thanks in advance

    Profile photo of MA_NSWMA_NSW
    Member
    @ma_nsw
    Join Date: 2006
    Post Count: 3
    September 11, 2006 - 3:35 am

    Thanks Simon for your prompt response [thumbsup2]

    >You will also be exempt from CGT for a 6 year period as long as you do not buy another home.

    I am new to this investment idea so forgive me if my questions seems very stupid:

    – Are you saying, I will get exempt from Capital Gain tax for 6 years for the current residential home when I will sell with profit.

    – What will happen, if we buy another property in future (although slim chances)?

    – Do we have to pay any tax or return first home grant to convert this residential property to investment property?

    – Is there any trap we should beaware.

    – Do you know where can I get more information (web link, etc) about switching from residential home to investment property?

    Regards,
    MA

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