Hi, everyone.
Very new here and nervous/excited…
One thing I would like to know, if you have a positive cash flow property, then you have to pay tax on it and if i am in the highedt tax bracket, that’ll be close to 50%, right? How do i avoid this tax?? What are the strategies?apollonia, maybe you could buy a neg geared property to offset this gain[
]BC
how bout getting your property depreciated? usually that offsets the +ve gain you are getting, however, that would depend on your property itself and how old it is…
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Tomorrow, you might wish you started today.
#####################Whats wrong with paying tax anyway…I wouldn’t mind a million dollar tax bill tomorrow[
]Simon Macks
Mortgage Hunter
[email protected]
0425 228 985The whole point of positive gearing is to STOP WORKING and earning the highest tax rate, to replace work with passive income.
If you want to keep working (enjoy working?) then perhaps other investments are more appropriate.
Personally, for high net worth individuals I would look at margin lending on shares or more effective are warrants. You need to really grasp those concepts though
Angie’s right. Depreciation can give you a “paper loss” to offset the income thus reducing the tax you’re liable for.
Also purchasing in the correct structure (trusts etc) can give asset protection whilst reducing your personal tax liability.Rod.
Apollonia
You only pay tax on on money you earn…therefore if your paying tax… your making money.
A wise man (my dad) once said never stop making money to avoid paying tax.
I agree with him
regards
Rob [8D]
I am agree with Simon if I am making money I don’t mind paying tax. Yes I will try to reduce my tax as much as possible. and whole idea of buying +ve cash flow property is getting passive income. In -ve cash flow you save tax but pay other way much more.
Amit
Everyone’s correct, apollonia,
As Steve mentions often in his book. “Would you rather invest to make money, or invest to save on tax”
I pretty much ditto everything everyone has said.
Cheers
Teylu“Has anything you’ve done, made your life Better?”
(American History X)Buy using a trust. You can then disdribute the income to relatives that pay less tax than you. You could also distribute to a company and the company will only pay 30% tax.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you, so much, everybody. Feel I have learnt a lot and can at least start discussions with my financial planner.
I am a doctor, almost a paediatrician. Just sat and passed horrible exams to specialise and I don’t really always find the work as fulfilling as I had anticipated. I think that is because junior doctors, who usually do the most work in the hospital system, come in for the least amount of appreciation and when you do a job like this you do it because you want to see people happy, not disgruntled. Everyone who goes into hospital, remember to say thanks to the intern and resident and registrar! My surgical clleagues do 80 hour shifts once every three weeks on top of a 50 hour week. YEs, eighty hour shifts with NO protected sleep. They snatch a few hours of naps a day.
I am anticipating the job to get better as I get further on.
Everyone here is so much more financially educated than me and I am somewhat out of my depth but the rewards are going to beworth the time learning.
My parents were very hard working migrants who were very frugal growing up. They are now in a very comfortable financial position and I admire them so much. They gave their five kidstop quality educations and we now are all set well in our careers. Of course, being a typical, ungrateful child of a migrant, I was embarrassed and annoyed about thier frugality and only in the last three or so years have realised what they achieved! Before that, I resisted all their financial advice. Talk about dumb!Apollonia, I admire you for going into medicine for the right reasons.
Personally, I want to work ethically and morally in my profession but the greatest thing stopping me as a graduate is the NEED for cash to live. That may force me to do a job I don’t want to.
Luckily, because of my financial literacy, I’m able to pursue jobs which are fulfilling. That’s what positive gearing investment is for me. I want to work, but in a constructive way.
I thus buy the freedom to choose the right employment opportunity, rather than being a passive victim of a need to work
Thanks, HArold.
To some extent, my sense of unfulfillment is a bit of “burnout” and the hospital system can and does screw you at any time and so you become distrustful of the system and even of your patients. WIth the threat of legal action or “complaints”, it can become hard to relax and enjoy the work and trusting your patient is one of the aspects of serving them. So, to some extent I need to readjust my attitude!I agree with you, totally and I don’t want to be a slave to my job, eiher. I will have moer flexibility to shape my career as I want it if I am not financially dependant on it.
I am still hoping to become a movie star, actually…
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