Tax - Where is the Party?

From: Marc Krisjanous


Hi all,

I am in the final stages of acquiring my first IP. I have decided to negatively gear the IP to offset my salary income. I incur the 48.5% tax rate.

What I would like to know is how do the refunds from the ATO (for the IP – depreciation, interest etc…) affect the negative status of my IP? Are the tax repayments considered as income and get added to the income stream of my IP. If so this seems to say that the IP can become positive?

Is this correct?

P.S. please forgive my terminology if incorrect and suggest otherwise!

Best Regards

Marc
 
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Sim

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Tax - Where is the Party? and Where is Rixter ?

Reply: 1
From: Sim' Hampel


Rixter ! Front and centre please... I think this one is for you to answer ;-)

(anyone else can reply too of course)

 
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Tax - Where is the Party? and Where is Rixter ?

Reply: 1.1
From: Rixter ®


Marc,

If you can supply me the following details I can analyse your individual circumstance and offer you some advice taylored to your situation. Whats your purchase price, weekly rental, age of the property, amount borrowed, title structure- sole purchaser, tenants in common or joint tenants. If tenants in common whats the split and Your annual income and other party/s income?

Hope I havent scared you off with details required but all these variables come into play!


Happy Investing,
Rixter :)
 
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Reply: 2
From: Duncan M




The refunds are yours, they are not income. Refunds are money that the ATO
has collected from you that it shouldnt have. It does not get added onto
your IP as income.

Duncan
 
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Tax - Where is the Party? and Where is Rixter ?

Reply: 1.1.1
From: Marc Krisjanous


Hi Rixter!

Whats your email address?

Marc
 
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Reply: 2.1
From: Dale Gatherum-Goss


Hi

Duncan is right, the tax refund is not income but merely the return of tax that you over paid during the year.

When does the party start? We'll be there!

Dale
 
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