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
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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