i know i have asked this question on other forums, but i didnt relize this forum was here[blink]!
Hypothetical situation:
INCOME:
my yearly income: $38,000
yearly IP income: $ 8,560TOTAL: $46,560
COSTS:
yearly loan interest: $12,510
total maintenance costs:$ 2,000TOTAL: $14,510
if my normal tax without an IP is $8,280, then if my new tax WITH IP is $6,495 (new income of $32,050), then would my tax return (in theory) be approx. $8,280
-$6,495
TOTAL: $1,785?if anyone has a response, greatly appreciated.[biggrin]
Newbie here, so you should probably wait for a more experienced opinion. But from what I gather what you have said is pretty much correct.[thumbsup2]
Nathan210,
I agree with your calculations. Make sure you include depreciation as a deduction as well.
James
I’ll add my two cents – I’m pretty sure thats the way it works. Make sure you claim for any expenses incurred aswell, including a portion of your home costs if you had a home study/office eg a portion of your rent/mortgage, electricity, stationary, phone, memberships, etc.
Regards,
SiThanks guys/girls. thought i was close, but just needed reassurance.[specool]
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