Scared of tax bill

[Joker]

Earlier this year I completed a ITWV variation. At that time I projected my losses when my interest rates were at 10%. They are now at ~7%. Now I am concerned that I will get a huge tax bill come at the end of this financial year. Can I resubmit my ITWV variation?

[buzzlightyear]

Earlier this year I completed a ITWV variation. At that time I projected my losses when my interest rates were at 10%. They are now at ~7%. Now I am concerned that I will get a huge tax bill come at the end of this financial year. Can I resubmit my ITWV variation?

Yes you can re-submit.

Have you worked out the impact now at 7%. Given there are still 6 months to go for the FY, I would be surpised if your revised ITWV didn't overcome this issue.

[Seaview]

Before submitting an adjusted variation form, you may want to recalculate roughly how much more tax they will take off you for the remainder of the year.
If it is a horrendous amount that cripples your cashflow now, there may be other options:
# Spend some cash this year on expensive IP repairs. We also employ our teenagers (for their pocket money) or other low income relies to do simple repairs, or gardening, painting, book-keeping and admin (computer) work etc
# Draw down some equity and buy some shares. Even better get a margin loan (not for the fainthearted at this point in time, and a low LVR would obviously be best) Prepay interest or capitalize it for optimum deductions.
# Realize some losses (on share market that should be easy nowdays) or sell any dog properties you have.
# Buy a newish property and get a depreciation schedule done which should give you high deductions. Multiple tenancies (eg duplex) are even better.
# maybe venture into commercial property too (although I am not personally familiar with this)
# Make a hefty donation to your favorite charity and deduct interest
#### and the biggest one of all, ask your accountant in October to request a late submission of tax return and defer it till May next year. This gives you an interest free loan from the government of whatever tax you may have to pay, which may help you pay for some of the above suggestions. If you make that money work a bit, it may just pay for any tax you owe.:)