221D

[WebBoard]

From: Mike .


PAYG on IP property income
From: Manny
Date: 25 Jan 2001

With IP income & the new tax changes, we now have to pay the "PAYG" (Pay As You Go) provisional tax on our rental income... My question is: Do you use the GROSS IP income as part of your PAYG figure? or do you deduct expenses when determining the amount you need to pay provisional tax on (ie. deduct the rates, water, etc. expenses)? (I should call the ATO for more info on this, but thought I'd ask anyhow)

Any information would be greatly appreciated & thanx in advance...

 

[WebBoard]

Gary

Reply: 1
From: Mike .


Re: PAYG on IP property income
From: Gary
Date: 25 Jan 2001
Time: 16:51:23

No, you use the gross amount. You get from the ATO an installment rate which is based on your last tax return. This is calculated by the amount of tax you end up paying (after all expenses) on your gross income in last year's tax return. So every 3 months you fill in the form with your gross income multiplied by your installment rate and send that to the ATO. Then you do a proper return at the end of the year where all your actual expenses are submitted and the amount of tax owed/owing is squared up.

Gary

 

[WebBoard]

Sim

Reply: 1.1
From: Mike .


Re: PAYG on IP property income
From: Sim'
Date: 25 Jan 2001
Time: 16:59:48

Aaaahhhhhh !!!!

PAYG... IAS... GST... it's all too hard... it's horrible... the taxman is coming to get us all... help !!!!...

...

*phew*

sorry about that... slight panic attack ;-)

I think I might need some professional advice... AND an accountant ;-)

Sim'

 

[WebBoard]

Terry A

Reply: 1.1.1
From: Mike .


What about the 221D?
From: Terry A
Date: 25 Jan 2001
Time: 21:26:53

I read the ATO information which states gross rent but as yet can find nothing about where 221D fits into the scheme of things. My wife received an IAS because of interest she earnt but so far the ATO has not sent me one in regard to IPs (negatively geared). Has anyone received a request for IAS based on their rental income?

 

[WebBoard]

Sim

Reply: 1.1.1.1
From: Mike .


Re: What about the 221D?
From: Sim'
Date: 26 Jan 2001
Time: 07:31:54

Yep, we have over $1000 in net rental income per annum (according to our last tax return), so they sent us an IAS to do.

If you are negatively geared it is likely you will not get one.

Sim'

 

[WebBoard]

Terry A

Reply: 1.1.1.1.1
From: Mike .


Re: What about the 221D?
From: Terry A
Date: 27 Jan 2001
Time: 21:33:39

That's OK then because after you submit the first IAS and your tax payable on the IAS income is less than $8,000 per annum then you can elect to pay it once a year and not quarterly.

 

[WebBoard]

Manny

Reply: 1.1.1.1.1.1
From: Mike .


Re: PAYG on IP property income
From: Manny
Date: 29 Jan 2001
Time: 07:57:25

Thanx to all the responses...

Cheers, Manny