Your income/(cost) per week question

[WebBoard]

From: Danny Dwyer


I am still "learning" to use this (excellent) PIA program, but have this "lack of understanding" about taxation figs in the "Your income/(cost) per week" line.

I just wanta know does the "Your income/(cost) per week" figures mean that you have a current "Income Tax Withholding Variations" (ITWV)(ex 221D)?

I don't have a ITWV in force with ATO at present, so is there a something that you can do to leave out the ITWV?

Does that make sense or am I off the track a bit?

Thanks

Danny D.

 

[WebBoard]

Reply: 1
From: Webmaster (Somersoft)


The model that the PIA software is following in determining the cash flow projections for any investment property assumes that tax credits (or tax payments) are included in the year in which they accrue. In fact, tax credits are taken into account on a monthly basis, which as you point out is only possible if you have applied for a tax variation.

If you have not attained the tax variation, in theory at least, the tax credits should only be taken into account sometime in the following year (as a lump sum) when a refund is obtained. While this is clearly a disadvantage to the investor, I suppose that you might wish to know how much of a disadvantage. The PIA does not currently have such an option, but I will consider it for future revisions. Nevertheless, it should make little or no difference in using the software to evaluate the relative merits of different properties, as it simply represents a delay in tax benefits, not their elimination.

 

[WebBoard]

Reply: 2
From: Terry Avery


Danny,

It doesn't matter if you have a ITWV in place or not. The program calculates
the income less deductions to work out how much it costs per week averaged
over the year. So if you only claim at the end of the tax year when you
submit your return then that would be your average cost/income. If you put
in the ITWV then that is what you would expect to see each week. So in
essence, yes you are off track a bit as the ITWV in not part of the program,
it is your choice to submit it or not.

Personally I don't like to give the ATO an interest free loan for up to 18
months of my tax refund so I submit ITWVs.

Cheers

Terry

 

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Reply: 2.1
From: Ian Redman


Hi There,

We have recently bought PIA Personal and we're about to make an offer on an Investment property. Please could you clarify if PIA Personal has the facility to enter a revolving line of credit type loan. We are expecting to get approval on a loan of this type. The loan is from Rams and consist of us putting all our money into the loan and fast tracking are repayments. Could you explain if possible how on PIA Personal we can enter this type of loan and get the bottom line figure correct on how much after tax the investment property will cost/income?.

Regards


Ian Redman