confused +ve geared

[JustaDreamer]

I earn about 75k and have a +ve geared property this is what I am not sure about. The loan repayments are about 500 p/m and its rented out for about 900 p/m.
So that’s 400 p/m in my pocket. 400 x 12 = 4800.
I thought that 4800 gets added to my 75k I make at worked and taxed at that rate.
I have just got my tax back and got about $5,000 back now way it reads that even thou I had that 4,800 I still get money back from the interest I paid on that loan, is that correct?

Thanks Mat.

 

[Rixter]

Mat,

I take it that the property is in your name.

That being the case all your income from wages, investments, rents etc are added together.

From that, all your tax deductable cash expenses & non cash depreciable expenses (payg related & investment) are subtracted from.

The figure left is called your taxable income and it is this figure your tax liability is calculated.

If your taxes already deducted through out the year are greater than your tax liability calculated on your taxable income (including medicare levy adjustments) then the difference will paid back to you in the form of a tax refund.

It appears you may have had far greater taxes deducted through out the year than was necessary in order to receive the tax refund amount you did.

Hope this helps.

 

[The Y-man]

Difficult to answer without other info - depreciation, other coss, tax withheld from your pay packets etc.

Cheers,

The Y-man

 

[JustaDreamer]

The last few years i have made 75k and normally lucky to get 1 grand back come taxs time this being 1st year had property rented out and was shocked at home much i got because most of what i heard was "don't buy +ve geared properties because you pay tax" where as "if you buy -ve geared come tax time you get it back"

Mat.

 

[Rixter]

what i heard was "don't buy +ve geared properties because you pay tax" where as "if you buy -ve geared come tax time you get it back"

Mat,

You heard from people who were qualified in this area without knowing your individual circumstances?