Consider i have 3 properties, property A, B & C. I am currently employed earning a salary that can have a tax variation applied to reduce the tax payable if a loss is made.
For round figures, consider my taxable income is $100k.
Property A
Annual Rental Income – $25,000
Annual Expenses (incl depreciation) – $50,000Loss made – $25,000
Property B
Rental Income – $15,000
Expenses – $25,000Loss made $10,000
Property C
Rental Income – $20,000
Expenses – $30,000Loss made – $10,000
Therefore:
Total rental income – $60,000
Total Expenses – $105,000Total loss made for the financial year is $45,000
Does this mean, that the $45,000 will come off my initial taxable income of $100,000 and therefore i should only pay income tax on the amount of $55,000?
yes
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
It also means unless your properties increase in value you only earn $55k a year and if they decrease, even less.
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