Forum Replies Created
Hey wrappack, are you a real Dr?
If so, can you answer me a question. I cannot give blood, cos I am an ‘organ recipient’ (thank you to the two people that have enabled me to see clearly [
]. Can I donate my organs?Cheers
MelOriginally posted by spider2:
It’s ridiculous people use animal namesSpider
Ha ha. [
] I step on spiders, or give them a bath so they turn white[}]Cheers
MelDougall, if you’re quick, you could go back and edit your post, and then nobody else will have to know..
And don’t worry, I’d say most of us have made typos once or twice [
] so we don’t generally pick on others….Cheers
MelOriginally posted by **PropertyGuRu**:Am I missing something????????????????Yes I think you are missing TV. [
][
]Ha ha. I thought that too, but then forgot to put it with my answer.[]Cheers
MelOriginally posted by kay henry:
But if a young man of 21 has 13 properties, they are not all mansions or new properties… Hence, I am wondering if such allowances apply.You can still depreciate the carpets, curtains, light fittings etc. so even for older properties there could be some depreciation. Even if SIS only gets $1000 per property, that’s $13K off his income. Not bad going.
Mel- if I might make a query to you. You said some of your props are in two names. If you want to change those into your own name only, do you have to sell each other the properties? As in you and the co-owner?Heck yes.[
!] Unless it is by court order in a divorce, separation of defacto etc. I don’t fancy going to court, and recently I wanted just to sign over the properties to my (sort of ex) partner, but my research told me that stamp duty was payable, as was CGT as I would be ‘selling’ for CGT purposes. That’s why he’s a ‘sort of’ ex, cos it’s really quite messy.Cheers
MelI just had my next post all ready to go, and hit Subscribe instead of post. The computer ate my reply[
]What I said though, will also answer the two questions that have come in since my last post.
I’m thinking that SIS has been investing for only the last year, and so this hurdle probably hasn’t really arisen for him.
HECS appears to be calculated similarly to Child Maintenance, where it’s based on your group certificate income, and then any rental loss you claim is added back. So I reckon SIS might well have a bill for his HECS in about 6 months (or at least, his refund will reduce).
Kay, the way to reduce your taxable income to zero, and still have money in the bank is to have lots of depreciation deductions. If you earn $50K, and rent=interest and other expenses, your ‘cash’ loss is $0. However, if it’s a new property, you might well be able to claim (in total) $15K or more in depreciation – being for building, and carpets, curtains etc. etc.
So your ‘taxable’ income is now $35K, but you really did get the benefit of the full amount. Have a couple of these properties, and bingo, your ‘taxable’ income is $0.
I also worked out how SIS caught up to my posts so quickly. He just posts his answers in multiple parts![
]Cheers
Mel[
] True. In the last 9 years I haven’t had a refund of less than $3000K. Some of which of course is from depreciation. so it’s not too bad[:o)]Cheers
MelGuys, in this country we are encouraged to minimise our taxable income as much as we can – legally.
I earn about $50K from my paid employment, and get something like $140K in rental income (Most properties are in joint names so it’s not as good as it looks). My interest bill is roughly $134K. This doesn’t include costs for the properties.
Suffice to say, I make a reasonable sized loss on my investing. Let’s call it $10K.
This reduces my ‘taxable income’ from $50K to $40K, and reduces my tax as well. Now the majority of my properties were built post 1987, so I get some healthy depreciation allowances. I haven’t done 02/03 return yet, but my 01/02 return showed a taxable income of – (yes, MINUS) $1500. 02/03 year I carry that loss forward, but will probably end up with a taxable income of MINUS $25K (at most). A lot of this is depreciation. A lot more of it is the fact that stamp duty in the ACT is tax deductible.
I know that the government will get their hands on me in several ways. Land taxes for starters. Then if I sell, there will be CGT. Also, in the future (and the whole reason I invest) I will be making a handy profit from my investing, and so will have income tax.
Am I being unfair to the rest of the taxpayers, or am I simply using the system to benefit myself in the short term, for the benefit of many more in the long term.
Of course, I will be doing as much as I can in the future to minimise my tax, but it will all be completely within the law. There’s far too many ways to make money legally than to try to rip the system off and get caught.[
]Cheers
Melsecurity, Bear is one of those guys – finds good deals from what he’s shared with us [
]Cheers
Mel
]. Can I donate my organs?
]
!] Unless it is by court order in a divorce, separation of defacto etc. I don’t fancy going to court, and recently I wanted just to sign over the properties to my (sort of ex) partner, but my research told me that stamp duty was payable, as was CGT as I would be ‘selling’ for CGT purposes. That’s why he’s a ‘sort of’ ex, cos it’s really quite messy.
