Hi Steve, i recently purchased Property secrets revealed and i would like to say that this is an excellent resource, well done and thanks.
I have a question however in regards to the Cairns property. I tried to replicate the figures from your negative gearing model and i seem to be getting different after tax figures to yours. At five properties you say you pay a tax of $408 and i get a tax of $9779.50. I have provided how i worked it out below along with the tax rates from the ATO. Could you please shed some light on where my calculations might be going wrong. Thanks in advance.
Salary $60,000.00
Less Tax $15,580.00
Total $44,420.00One property
Salary $60,000.00
Rent $22,539.00
Interest $11,634.00
Property costs $13,972.00
Subtotal $56,933.00
Tax $14,291.86
Total $42,641.14Five Properties
Salary $60,000.00
Rent $112,695.00
Interest $58,170.00
Property costs $69,860.00
Subtotal $44,665.00
Tax $9,779.50
Total $34,885.50Ten Properties
Salary $60,000.00
Rent $1,126,950.00
Interest $581,700.00
Property costs $698,600.00
Subtotal -$93,350.00
Tax
TotalTax rates
($0 – $6000) (Nil)
($6001 – $20000) (0.17) (Nil)
($20001 – $50000) (0.3) ($2,380)
($50001 – $60000) (0.42) ($11,380)
(Over $60000) (0.47) ($15,580)Hello,
Not Steve here but will attempt to answer:
2 reasons
1. Don’t forget medicare levy 1.5%
2. Non-cash tax deductions (depreciation and borrowing costs) $7253. This was on the fact sheet for the Cairns Beach Resort, which wasn’t in my Property Secrets Revealed but when I contacted Brent he gladly sent one. I recommend you get this if you haven’t got it.I just re-checked Steve’s numbers & it is correct – for 1 property tax payable is $12,039.
Steve’s a Chartered Accountant he must be correct 
]Cheers, i’ll go over the results again with that figure. Thanks
Hi JStPerth,
can’t help thinking that Chartered Accountants were helping to run HIHTerry
Finance
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