Hi all.
I imagine many people starting out with property still manage to get a bit of a tax return. even with an income tax withholding variation. normal deductions may still see them get some cash back at tax time. this is where i am at the moment. My extra funds from the variation straight into paying off debt but we normally still get a couple of grand back at tax time and we normally spend that on ourselves.
Now recently i have started playing with shares. I have a LOC Half is drawn from a recent property purchase. I have now started the odd share purchase using this LOC also. So far im doing well. When i sell the shares i immediately repay the borrowed funds so there is no contamination off the LOC. OK
Now what will happen at tax time. I have managed to build up about $7,000 in profit over the last month so by the time this gets added to my wage along with property income and losses at tax time i may see my small refund dissapear.
I know some would say "who cares you have made the profit on the shares" This is true but all profit from the shares goes straight into a shares account that all funds from share sales or purchases and transacted from.
I may be running the risk of contaminating the LOC funds if i use it for personal non income items.
I was thinking of just removing the profit from share sales ASAP after repayment of the LOC funds used for the initial purchase.
So i guess what i am saying is how do i axcess the funds without LOC contamination. Im guessing many others with share and property portfolios would have come across this.
cheers.
I imagine many people starting out with property still manage to get a bit of a tax return. even with an income tax withholding variation. normal deductions may still see them get some cash back at tax time. this is where i am at the moment. My extra funds from the variation straight into paying off debt but we normally still get a couple of grand back at tax time and we normally spend that on ourselves.
Now recently i have started playing with shares. I have a LOC Half is drawn from a recent property purchase. I have now started the odd share purchase using this LOC also. So far im doing well. When i sell the shares i immediately repay the borrowed funds so there is no contamination off the LOC. OK
Now what will happen at tax time. I have managed to build up about $7,000 in profit over the last month so by the time this gets added to my wage along with property income and losses at tax time i may see my small refund dissapear.
I know some would say "who cares you have made the profit on the shares" This is true but all profit from the shares goes straight into a shares account that all funds from share sales or purchases and transacted from.
I may be running the risk of contaminating the LOC funds if i use it for personal non income items.
I was thinking of just removing the profit from share sales ASAP after repayment of the LOC funds used for the initial purchase.
So i guess what i am saying is how do i axcess the funds without LOC contamination. Im guessing many others with share and property portfolios would have come across this.
cheers.