Ohh dear Astral, your desire to avoid tax has blinded you to how flawed your logic is. I can't begin to explain how fundamentally flawed your calculations are.
First and foremost, let's begin with your statement of saving $105,000 a year in tax and how this equates to $1,050,000 over 10 years. Let's also assume you are referring to the highest tax bracket of 45%.
In order to achieve a saving of $105,000 a year you would need a net deduction of $233,000 a year. This is the loss you have incurred from your great property portfolio...
So each year you lose net $128,000. That is, the loss of $233,000 from your property portfolio minus the tax saving of $105,000 from the generous tax office.
So no, you haven't saved a cent. In ten years you have lost over 1.28 million dollars through your fixation with negative gearing.
Yes, the ability to reduce your tax is a benefit. But the real benefit lies in the possibility to realise capital gains which far outweigh the losses above.
:(
- Forums
- Political Debate
- How would you improve the Australian tax system?
Ohh dear Astral, your desire to avoid tax has blinded you to how...
-
- There are more pages in this discussion • 50 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)