Can someone tell me how I can work out how much tax I can claim if I purchase a negatively geared property?
Depends on a heap of stuff, your income, the property, new or old, deprciation items ect… alot to to take into account..
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
how much tax do you want to get back?
how much do you have to pay out of your own pocket into the mortgage to get that tax back?
is it worth it?More stuff on the voigtstr at http://users.bigpond.net.au/voigtstr
Also what structure you buy the property under..
There’s a lot to think about..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculatorhhmm ok.. from what I understand, I have a basic formula.
With negative gearing you are making a loss. This loss reduces your taxable income.
e.g income = 50K, IP loss = 10K. So you are taxed at income of 40K. So the difference between the tax income of 50K and income 40K I should get back from tax.
This is just a rough estimate, not including depreciation etc.
How far am I off the mark??Not that far although there are alot of things that need to be analysed first.. like how much negative are you comfortable with which will also determine the type of property you should look into..
Roy H.
L.R.E.A., Dip FS (FP)Guardian Property Specialists (GPS) is a research-focused company that specialises in sourcing and providing residential investment properties Australia wide!
In the example you gave of $50k being reduced to $40k you are effectively ‘saving’ $3,000 in tax. Eg you are not paying 30% tax on that $10,000. Other factors come into play but from a basic view your loss is reduced to $7k for the year
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