All Topics / Legal & Accounting / Tax credits?? What the….??

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  • Profile photo of Misty1Misty1
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    @misty1
    Join Date: 2004
    Post Count: 348

    Just read about “benefits” of tax credits.Does anyone have experience with clocking them up,&/or using them?Pro’s & cons?[confused2]

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429

    What do you mean by Tax Credits? Is it GST related? Or shares related?

    Don’t know if this will answer your question, but for FY 02/03 my taxable income was -$107K, so I can carry that forward to FY 03/04 and have to earn $113K before I will pay any tax at all[biggrin]

    Cheers
    Mel

    Profile photo of Misty1Misty1
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    @misty1
    Join Date: 2004
    Post Count: 348

    well,i reckon u’v answered my qu! I figure i will be in the serious negative this yr,& was wondering what happens when “in the red”. Cheers.

    Profile photo of kpkp
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    @kp
    Join Date: 2004
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    Hi melbar,
    How on earth do you manage to have a taxable “income” of – 107k ?
    Is this from capital losses, or is this neg. income…
    As the great Pauline said……..please explain..

    KP

    Profile photo of OrionOrion
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    @orion
    Join Date: 2003
    Post Count: 16

    Mel,

    Can you explain a bit how this can be done?

    What allowed you to carry over your taxable income? Was is the sale of something, or the re-financing of something.

    Very interested. [biggrin]

    Kind Regards,

    Orion [evo]

    Originally posted by melbear:

    Don’t know if this will answer your question, but for FY 02/03 my taxable income was -$107K, so I can carry that forward to FY 03/04 and have to earn $113K before I will pay any tax at all[biggrin]

    Cheers
    Mel

    Profile photo of FFCommFFComm
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    @ffcomm
    Join Date: 2004
    Post Count: 627

    I don’t know the details of how Melbear got a large loss, but here are a few thoughts…
    1) Deprication amounting to many $$$; esp. if the place is new;
    2) Neg. Gearing to a degree;
    3) Give a large % of income away is loans (pls note you need an excellent tax advisor for this, and I have diliberitly left this point vague).
    4) He has massive legally deductable expenses and uses loans on his IP/PPOR to pay for this.

    Am I getting warm Melbear???

    Rgds.
    Lucifer_au

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429

    Hey Lucifer

    Melbear is a ‘she’ [:)], but other than that you were partly right.

    1. Depreciation benefits on 6 newly constructed units.
    2. Stamp duty deductions ($50K alone for FY 02/03)
    3. Interest paid to friends/family (50%) for loans to enable us to purchase aforementioned units.

    As for carrying the ‘income’ (or lack thereof) over, there’s a spot on the tax return where you can input your ‘losses carried forward’….

    Cheers
    Mel

    Profile photo of FFCommFFComm
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    @ffcomm
    Join Date: 2004
    Post Count: 627

    Ahhh’… My complete apologies… It’s just too easy to press reply and not double check!…. A 107 thousand apologies!! (I have tripled checked this reply!).

    Rgds.
    Lcifer_au

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