So say I earn $500,000 , my tax obligation would be $198,097 each year By not doing anything, I paid $1,980,970 tax over ten years
Negative Gear I need to reduce the income to $180,000 so that I only pay $54,097 in tax. ( A tax difference of , $144,000 ie.$198,097 minus $20,797 is $144,000)
So I need to negative gear $320,000 in 12 months thats $27,000 per month, say by buying 21 houses ( each house $450,000 at 3.4% interest rate)
10 years on, the houses appreciate by $150,000 to be $600,000 each.
In ten years I only paid $540,970 in tax total. Have a house portfolio of $12,600,000 (ie $3,150,000 Price appreciation)
I did "sacrifice" $3,200,000 over ten years but I gain so much more !
