I cant find a post on this, pls point me to one if it exists.
This is all a bit jumbled in my head, so apologies in advanced, hopefully this makes sense to someone and they can explain it
Can someone in the know pls give me a breakdown of what happens come tax time. I have bought my first two IP's in the last 6 onths, so the next tax return for me will involve tax deductions for IP costs (interest, maintenece etc) + depreciation. I did all these calc's pre-purchase and both IP's are cashflow neutral/+ve (individually).
My question is how does this work the more IP's you buy? Are the calcs for each property you buy treated individually or is it the more propertys you buy there is some sort of sliding scale? IE:
IP1 ends up giving you back $5K
IP2 ends up giving you back $7K
IP3 ends up giving you back $3K
etc
etc
does it just continue on like that, to a point where you are getting back more than you have paid in tax? or is it some sort of sliding scale that just gets you to paying $0 tax?
Would love this explained if possible....Thanks!!
This is all a bit jumbled in my head, so apologies in advanced, hopefully this makes sense to someone and they can explain it
Can someone in the know pls give me a breakdown of what happens come tax time. I have bought my first two IP's in the last 6 onths, so the next tax return for me will involve tax deductions for IP costs (interest, maintenece etc) + depreciation. I did all these calc's pre-purchase and both IP's are cashflow neutral/+ve (individually).
My question is how does this work the more IP's you buy? Are the calcs for each property you buy treated individually or is it the more propertys you buy there is some sort of sliding scale? IE:
IP1 ends up giving you back $5K
IP2 ends up giving you back $7K
IP3 ends up giving you back $3K
etc
etc
does it just continue on like that, to a point where you are getting back more than you have paid in tax? or is it some sort of sliding scale that just gets you to paying $0 tax?
Would love this explained if possible....Thanks!!