Can we get fully lucky back to provide some guidance?
Salary Sacrifice to super up to your limits ($30K <50, $35K>50). on an income of $150K. assuming you're under 50 you could do say $15,000 pa to super.
This would save you about $3,650 pa in tax and instead of wasting money you'll have improved your net financial position.
A recently received an email from Mark Rolton massland - Maxima delivers $13,516 worth of tax savings per year!
would you consider buying ?
the property is for sale for $329,700 , is current rented for $350 pw with deprecation work $13,516.
Bumble - What LVR do you have over your existing 4 properties???
Have you considered increasing LVR which will both release equity to allow you to purchase more property etc? This will also increase the amount of deducatable interest you can claim on your existing properties and may help to keep you tax bill for next year down...Interest is your single biggest deductible on any property, so if your LVR for example is at 50% across those properties you are earning heaps in rental and paying bugger all in interest which = additional income which isnt taxed until the end of the financial year...if you can match up what you pay in interest by increasing your LVR to what you receive in rent on each property then you may not have such a painful surprise at the end of the tax year...and then have extra cash (released equity) to buy us all coffee etc.
Are you saying that if i re-finance my existing loans to a bigger loan for each of the properties resulting in a higher LVR then i can claim more deduction in tax?
No you cannot do this. But you can borrow to invest and if the investment results in a loss (negative gearing) this can reduce your taxable income and thereby safe you tax.