2009 ITWV Notice Received Back.
- Thread starter Rixter
- Start date
What the??
Probably a dumb question but how is this achieved?
Thanks.
Probably a dumb question but how is this achieved?
Thanks.
Thanks Rick, I've still got alot to learn!
...another year ahead of Zero Tax."
Do you mean that your adjustments via the ITWV equal or are greater than the tax you would have paid via your salary, therefore cancelling each other out?
Thanks again,
David
...another year ahead of Zero Tax."
Do you mean that your adjustments via the ITWV equal or are greater than the tax you would have paid via your salary, therefore cancelling each other out?
Thanks again,
David
Yes. All income (payg, investment etc) less deductible expenses reduces our taxable income to zero.
In fact its below zero however the ATO allows us to carry those deductions forward (called tax credits) to be written off against future year/s income.
Hope this helps.
Thanks Rick, I can see why you are pleased. I'm currently getting my deductions back in a lump sum at tax time. (I figure while I can afford to carry the weekly deficit I may as well as I see it as forced savings.) With IP 4 on the horizon I can see that the ITWV isn't far off being a necessity for me though.
Cheers,
David
Cheers,
David
The BIG advantage of using the ITWV tool is that it allows you to increase your cash flow through out the year, so you can use it to offset the holding costs of additional property you would not have been able to purchase with out it - thus increases your exposure to CG and increase your wealth faster.
Hope this helps.
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Yes, always good to err on the conservative side.
We basically put down all our previous year expenses leaving out repairs/maintenance.
Wow, thats a lot of expenses if you're griding income down to zero. I have had a couple of zeros but I only submit in Oct/Nov, after paying a couple of months of PAYG tax. Works out about even at the end or just a small refund but this way my bonus comes in at 100% instead of giving half away to pay for politicians meal and drink allowances to places like Club Iguanas.
WOW 0% tax.I keep trying to get my husband to do the Tax variation thing, but he is afraid that his employer would stuff it up somehow. (Long story, but they are a bit thick!)
Anyway, I'll see if his opinion changes after we do our tax at the end of this Financial year.
Hoping for a decent refund so we can pay off a couple of bills and free up more cash flow next year...
Hi Rixter,
You mentioned above that you go off the previous years expenses. Do you work out the interest portion of your investment loans based on your current interest rate, or do you just go off last years interest?
Also, do you include water rates and any mortgage fees. I noticed that there is no specific field for these items under rental properties, but there is a field for "other" items.
Adam
You mentioned above that you go off the previous years expenses. Do you work out the interest portion of your investment loans based on your current interest rate, or do you just go off last years interest?
Also, do you include water rates and any mortgage fees. I noticed that there is no specific field for these items under rental properties, but there is a field for "other" items.
Adam
All our loans are Interest Only & the majority are fixed, so I put down the annual interest on those in the 'interest' field (3a) . With our LOC's I use our current rate and add this into the 'interest' field also.
I include water rates under the 'rates & insurances' field (3b). Our mortgage fee's are minimal so I dont bother to include those in our ITWV. At the end of the FY they are accounted for. They are minimal and written off over 5 years anyway.
Hope this helps.
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Okay, my loans are all IO, but on a variable interest rate. So, I guess all I can go off is the current rate and re-submit the variation if this changes down the track.
Thanks for you help!
I also have a 0% tax applied to my PAYG. As the deductions are now quite large (mostly interest) I dont need to worry too much about the accuracy... when its < 0 it doesnt matter by how much
But before it did reach 0 its more important, if you estimate more I think you can incur penalties??? I estimated like Rick did ... used actual incurred deductions from the previous year as a guide than estimated the interest calculations manually...which was pretty painful as I had several different loan accounts with balances changing. If I sold or circumstances changed significantly I would put an amendment in to vary the rate. Using the e-variation form it is usually varied within a 1-2 pay's (paid fortnightly).
As Rick said the increased cash flow creates greater borrowing capacity to invest more, or at least to pay off your undeductable loans quicker
Dave
But before it did reach 0 its more important, if you estimate more I think you can incur penalties??? I estimated like Rick did ... used actual incurred deductions from the previous year as a guide than estimated the interest calculations manually...which was pretty painful as I had several different loan accounts with balances changing. If I sold or circumstances changed significantly I would put an amendment in to vary the rate. Using the e-variation form it is usually varied within a 1-2 pay's (paid fortnightly).
As Rick said the increased cash flow creates greater borrowing capacity to invest more, or at least to pay off your undeductable loans quicker
Dave
Just received our 2009 ITWV notices from the ATO in todays mail...another year ahead of Zero Tax
Anyone else got theirs back??
Rixter
I lodged mine today but it doesn't matter how hard I try, I can't reduce it down to zero.
Cheers
I got mine back today - 8%. I'd calculated a rate of exactly 8%, so it's good to see they're on the ball
Mine only recently came in, it's now in the paymasters MYOB system, we used to enjoy having the return paid as a lump sum each year (sometimes longer), however, we have now gotten used to receiving it in fortnightly bonuses and use this to assist with the servicing of the loans.....No PPoR to pay down, but this would be a benefit here as well at your applicable rate
