Tax minimisation
- Thread starter simbi99
- Start date
use the most appropriate holding structure ?
ta
rolf
ta
rolf
Tax Strategies fall into one of these categories. A taxpayer may find that ultilising as many of these as possible may work (or just push the problem to next year 
)
-
In the case of many IP owners the fourth strategy often seems to be relevant. When the IP turns +ve geared they buy another, and another.
Deferring income doesn't really work with an IP. Prepaying expenses is limited usually to interest and it provides a one year benefit. Therafter every other year it must be repeated or a major tax problem occurs.
The fifth one - Timing differences relates to PAYG Variations. Bring fwd the annual tax benefit to a reduced tax on salary each fortnight or month. My view is you only part claim it. Leave a small / reduced refund at year end and not a debt.
The final one is important. Get a QS report or have one confirm its not worth the effort. And claim borrowing expenses correctly. Another hidden one is deductions available when you buy. The lawyers settlement sheet may include a share of land tax, rates etc...
Almost missed one - Use a good property savvy tax adviser.
)-
- - Not receiving income. (ie Steele's decision).
- - Deferring income
- - Prepaying expenses
- - Offset a profit against another deductible / loss
- - Timing differences
- - Non-cashflow deductions
In the case of many IP owners the fourth strategy often seems to be relevant. When the IP turns +ve geared they buy another, and another.
Deferring income doesn't really work with an IP. Prepaying expenses is limited usually to interest and it provides a one year benefit. Therafter every other year it must be repeated or a major tax problem occurs.
The fifth one - Timing differences relates to PAYG Variations. Bring fwd the annual tax benefit to a reduced tax on salary each fortnight or month. My view is you only part claim it. Leave a small / reduced refund at year end and not a debt.
The final one is important. Get a QS report or have one confirm its not worth the effort. And claim borrowing expenses correctly. Another hidden one is deductions available when you buy. The lawyers settlement sheet may include a share of land tax, rates etc...
Almost missed one - Use a good property savvy tax adviser.
Sell it to me cheap.
I will send you an invoice for services for $10k. Pay the invoice. Claim the deduction.
If you wish I can increase the invoice amount, until such time as you no longer have any tax to pay.
Blacky
I take it you have an ABN. Are you GST registered?
Careful, you'll have to pay tax on the income.
Certainly am.
Careful, you'll have to pay tax on the income.
Its ok - I don't have a tax problem so no need to reduce it. I have 'fat' in the system to absorb a bit more income
