All Topics / Finance / Calculation of Income for Serviceability

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  • Profile photo of Real2Real2
    Member
    @real2
    Join Date: 2007
    Post Count: 15
    April 23, 2007 - 2:29 pm

    Can anyone shed some light on what would be counted as "income"  for "servicability purposes", using the following hypothetical tax return figures:

    Label   1     Gross Salary & Wages                     $70,000

    Label   17    Capital Gain on sale of Property   $70,000

    Label   20    Net  Rental   Loss                            ($2,000)

    D5                Other Work- Related Expenses     ($1000)

                         Taxable Income  $137,000

    Assume, the capital gain from the sale of the property is a one-off.

    Assume Net Rental Loss is claculated as follows:

    Gross Rent                    $14,000

    Cash Deductions         $10,000
    Non Cash Deductions $6000

    Net Rental Loss            ($2000)

    Cheers

     

                                               

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 24, 2007 - 12:59 am

    Very simple

    1) Gross Salary & Wages – $70,000 (most lenders work on net incomes)
    2) Gross Rent – $14,000 (Most lenders take between 70-80% of Gross rent)
    3) Add back negative gearing benefit on difference between Gross rent and Interest costs.

    Richard Taylor | Australia's leading private lender

    Profile photo of Real2Real2
    Member
    @real2
    Join Date: 2007
    Post Count: 15
    April 24, 2007 - 1:10 am

    Thanks Richard

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