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)
Featured News
Featured News
The Watchlist
MGU
MAGNUM MINING AND EXPLORATION LIMITED
Neil Goodman, MD
Neil Goodman
MD
SPONSORED BY The Market Online