Hi Guys,
Interested on peoples thoughts regarding Tax Variation.
The idea of accessing your entitled tax back weekly rather then waiting 12 months sounds pretty good.
For example, have a look at these figures for one year on a sample investment property.
Rental income $18,279
Interest expense $25,238
Other general expenses $3,751
Pre-tax cash flow -$10,710
So $10,710 per year, or $206 a week, is needed to support this property while you wait for your tax return. Imagine you had two or more investment properties, could you find $20,000 to $30,000 a year?
Now let?s take a look at the figures on the same property, including tax breaks.
Rental income $18,279
Interest expense $25,238
Other general expenses $3,751
Tax break (deductions) $8,141
After tax cash flow -$2,569
$2,569 per year, or $49 per week, is obviously much easier to find than $206 a week. As you can see, these tax breaks make investing in property much more affordable.
Im sure Accountants and Tax nuts will be able to add some advice on this. Pros and Cons. Do you recommend Tax Variation to clients? Why, Why Not?
Cheers
Interested on peoples thoughts regarding Tax Variation.
The idea of accessing your entitled tax back weekly rather then waiting 12 months sounds pretty good.
For example, have a look at these figures for one year on a sample investment property.
Rental income $18,279
Interest expense $25,238
Other general expenses $3,751
Pre-tax cash flow -$10,710
So $10,710 per year, or $206 a week, is needed to support this property while you wait for your tax return. Imagine you had two or more investment properties, could you find $20,000 to $30,000 a year?
Now let?s take a look at the figures on the same property, including tax breaks.
Rental income $18,279
Interest expense $25,238
Other general expenses $3,751
Tax break (deductions) $8,141
After tax cash flow -$2,569
$2,569 per year, or $49 per week, is obviously much easier to find than $206 a week. As you can see, these tax breaks make investing in property much more affordable.
Im sure Accountants and Tax nuts will be able to add some advice on this. Pros and Cons. Do you recommend Tax Variation to clients? Why, Why Not?
Cheers