How are you all?
Can any one please help me?
EXAMPLE:
If i have an income of $44,000 and i buy a property that give me a possitive cashflow of $1000, how much is taxed out of that 1000?
or do i get taxed out of 45000?Thank you for you time and help.
regards
Felipe
Hi Felipe,
Yes if you make more money you pay more tax – however, you may be able to get a tax deduction via “paper” deductions. i.e. depreciation usually 2.5% on buildings and maybe 25% on furnishings portable.
Very complex area.I am not qualified so do not take this as advice.
You could take this as advice if you wish –
Minimise tax where you can but don’t become too concerned with saving it. Think more about how to increase your income.
After all nobody pays more tax unless they make more money.[fez]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Assuming your taxable income is $44K then you will pay $9060 in tax.
If you buy the property and it is cashflow positive and now makes your taxable income $45K then you will now pay $9360 in tax.
In a nutshell the taxman takes away an additional $300 from you at this income level.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Thank you so much for you time! thats now clear in my head.
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