Why pay the ATO $10,000 when you don’t have to!

Here’s how to Reduce Tax!!

Case Study:

A wage earner on $87,000/yr will pay $19,822 in tax according to the ATO tax scales for 2017/18. If this wage earner

Taxreleases the equity to buy an investment and claims all the allowable tax deductions including depreciation on buildings and plant & equipment, then they may be able to reduce their tax in excess of $10,000/yr. Obviously, every situation is different & you are advised to seek professional financial guidance.

If you own a home worth $450,000 and owe $250,000 at present, you could release $110,000 to purchase an investment property worth $500,000 plus costs. With rental returns around 5% plus, this would be a solid investment scenario.

One of the great things about purchasing and owning an investment property is the fact that it can help you save tax. You can actually claim the expenses and some depreciation against the rental income so you’re not paying as much tax as you might have been from other sources.Tax Refund cash

Now, we are not saying that should buy an investment purely for the tax deductions, however it is a very useful deduction that must be considered in your overall decision. In fact, your main reasons will be either for capital gain or cash flow or both.


**** The problem is that most wage earners are paying way too much tax & what’s worse they have equity in their home that is costing them big $$$$ every day as it is not earning anything. ****

What should you do next?

Contact Zenith Property Consulting to discuss your current financial position & determine if you are able to refinance & release sufficient equity to buy your first investment property. Your financial future may well depend on making a great decision now that will lead to you growing a superb property portfolio as part of your wealth strategy. Call today!!!!

If you’re uncertain or want to ask a question get in touch with our team:

peter@zenithpropertyconsulting.com.au or steve@zenithpropertyconsulting.com.au

or call us on: 1300 854 552

 

Disclaimer: The information contained in this article is to be considered as general advice. It has been prepared and provided without taking into account your objectives, financial situation or needs. You should consider its appropriateness having regard to your own objectives, financial situation and needs. Before you make a decision, you should obtain and read a Product Disclosure Statement.

Comments are closed.