Minimise tax in general (legally)
- Thread starter tvadera
- Start date
aaron
how would you suggest he do that ?
how would you suggest he do that ?
Follow the rules to make himself exempt from them. Getting different clients or changing his pay to performance-based.
and even then if he doesn't meet the results test, business premises test, unrelated clients test or employment test he may fail anyway. getting more clients or being performance based doesn't automatically mean he has a PSB.
Yep but it's just a suggestion to help his situation because PSI rules are quite restrictive.
another suggestion is to quit his job and setup a coffee shop or subway franchise. might not be practical or even relevant but a suggestion.
No need for reductio ad absurdium, coastymike. I think you, and this forum, are better than that.
I'm assuming you haven't caught up with the latest re: Great Southern and Timbercorp?
the latest? Since the GFC and almost every provider going into receivership?
then Gunns buying a few out, and then Gunns now in trouble after the resignation of their CEO my Brown, or Grey or whatever?
Its still a great tax deduction, even though the 'units' arent worth anything, the interest on the loan is still tax deductable.....
then Gunns buying a few out, and then Gunns now in trouble after the resignation of their CEO my Brown, or Grey or whatever?
Its still a great tax deduction, even though the 'units' arent worth anything, the interest on the loan is still tax deductable.....
Not always. A lot of these poor 'investors' have suffered a double whammy of losing their money and being denied a tax deduction.
what is the point in spending a dollar to save 30 or 40 or 50 cents?
Yes why not, sounds like a good idea, only if I make 3x more than my current income. Else why go through that hassle. Currently clocking in and clocking out provides more than enough income to have a good lifestyle and defintely dont want to screw that going down the business path..
Owning subway and someother franchise makes sense, but comes down to who would run the shop. I am flat out with work and not sure whether other person would care if doing this full time for me
Changing client, in IT normally contracts awarded are for 6-12 months , hence you cannot get away with PSI rules (need to change 4 clients in an year to pass PSI, defintely not possible in IT contracting world)
buying shares; - have started learning about those, lost 1.5K in the first trade ; trading QBE ; burnt my fingers ; beginners luck didnt apply in my case
buying trees: - wow havnet looked into it, can you guide?
buying more properties: have only looked in melb, yields are horrible, and prices are too high (having said that my IP has tanked by 5-7%
). Dont see enough CG in future unless I start to change my mindset and look in different states.Looking into Asia right now, currency exchange rate is high
Trading currencies: tried that , lost in the first trade swapping AUD vs USD, have lost self belief and needs more work in that area.
regards,
But you're paying $1 to avoid 45c tax, with no possibility of upside. What's the point?
Most people who invested in Great Southern would have been better off gritting their teeth and paying the tax.
Exactly.
I think people get far too worked up on not paying tax. To the extent that their actual quality of life suffers.
I will obviously have to make my sarcasm a bit clearer next time. Sublety is dificult in an online environment.
My point was much the same as Sanj, Ideo, Dan and Tobe.
I got a bonus today, after tax and hecs, I actually get less than half of the cash. But I still get the cash. I earn a high(ish) rate so I pay a high rate of tax, I can deal with that.
I don't see the point spending money entirely for the tax write off. If I am investing to earn, and that costs me money, the tax deduction is a benefit. If I study to improve my job prospects, and the costs are deductible, the deduction is a benefit. If i feel generous and give to charity, and can deduct that, that's a benefit. But there's not point doing these things just for the deduction, because it still leaves me out of pocket.
I know this wasn't the original question, but it's the way the conversation was going.
Also, I know you were joking and probably knew I was joking, but it's been a slow afternoon at work.
