ITWV and Taxable Income question??

I (kind of) understand that the ITWV form allows you to pay less PAYG tax....

I have a couple of (maybe stoopid :confused::eek: ) questions??

1. Does the ITWV work for PAYE as well? (we are self-employed)

2. If you DO take advantage of the ITWV .....I am assuming this reducues your taxable income........Does this not make your Tax Assement Noticement $5000 less (assuming a $100p/w neg gearing)???......Wouldn't this seriously impact on one's borrowing power for the next IP??

:) Can you tell I am VERY close to buying :)
 
I (kind of) understand that the ITWV form allows you to pay less PAYG tax....
Well yes, less per year because of your IP losses which converts into paying less tax per week - so you get your tax refund early and via weekly drip feed.

1. Does the ITWV work for PAYE as well? (we are self-employed)
Are you paying yourself wages? then yes.

2. If you DO take advantage of the ITWV .....I am assuming this reducues your taxable income........Does this not make your Tax Assement Noticement $5000 less (assuming a $100p/w neg gearing)???......Wouldn't this seriously impact on one's borrowing power for the next IP??
A reduced income is going to turn up on your end of financial year PAYG slips or tax assessment notice anyway - so the ITWV will have no impact.
The next part of your Q is why it is important to use a MB to source your loan. The "with it" banks will do "add backs" for paper losses. i.e. the depreciation claims (which are not cash losses only paper losses), will be added back to get your 'real wages'
 
"add backs" for paper losses. i.e. the depreciation claims (which are not cash losses only paper losses), will be added back to get your 'real wages'

Thanks Propertunity....

I know this is a "how long is a piece of string" question.
Assuming a $250,000 house ... approx 25-30 year old... nothing really flash :)

How much depreciation $$ might you get??
 
Thanks Propertunity....How much depreciation $$ might you get??

Why not just use the exact figure on the Depreciation Schedule that you got from the QS?

Without that there is just no way of telling. I am claiming about $7K for a 22 year old one that has had a $40K reno done on it 3 years ago. $5K for a really old one with a reno. I think you might get $15K for a brand new shiny IP?

So the figures are really meaningless to you. Get a QS.
 
ds should cost you only around $6-800, is tax deductable and ensures you claim everything you can. highly recommended for any house under 40yrs old or one that has had a reno in the last 15yrs.

i personally don't claim my depreciatin on my itvw, only holding losses, as it's a bit to tricky for me to work out - means i get extra cashflow during the year (fortnightly) and a lump sum tax return. both are very nice.
 
Lizzie, what do yo mean the depreciation is hard to work out ? Is that because you may do a number of reno's in any given year ?
 
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