CAN SOMEONE PLEASE TELL ME IF AT TAX TIME DO I ONLY GET TAXED ON THE PROFIT I MAKE OUT OF MY IPS IF SO WHAT ARE THE COST THAT CAN COME OUT OF THIS PROFIT[?][?]
Murmer, there are many costs to do with owning a IP that are tax deductable
for eg
Loan interest
Rates
Insurance
Land Tax
Manag Feesthe rent you receive is obviously tax assessable, so in the end you add up your profit, and that is what is your tax assessed on the property
there are also non cash deductions such as depreciation of furniture and fitting and hot water system etc, houses after 1985 can also be depreciated at certain rates,
hope this helps
Fudge111[
]Hi Murmur,
You probably know this…basically you get taxed on your income from the property; and after deductions hopefully your assesable income is lowered and you are left with a profit (+ geared). If not, you get a tax refund from other sources…eg. job (- geared). And you probable know as well…that your profit is added to other sources of income and could raise your tax bracket etc.
Chriso
Murmur
Another one which appears to have been missed is Building Write Off.
Cheers Richard
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http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
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