I was listening to a guy at work, and he was saying I can get onto a different income tax structure for investment purposes to ease the negativity of my cash flow.
1. Is this a true/viable option?
2. Should I NOT listen to this person?
3. Have I understood him correctly?
I want to have as much informatiopn as I can get before we dive in and invest.
Thanks .[confused2]
Flanno40Originally posted by flanno40:I was listening to a guy at work, and he was saying I can get onto a different income tax structure for investment purposes to ease the negativity of my cash flow.
1. Is this a true/viable option?
2. Should I NOT listen to this person?
3. Have I understood him correctly?
I want to have as much informatiopn as I can get before we dive in and invest.
Thanks .[confused2]
Flanno401/ Could be
2/ Not sure what exactly was said
3/ Kinda think youve got itYour points 2 and 3 contradict each other
I feel Margaret Lomas book “How to Create An income for life” revolves around the area you are attempting to find out about.
Yr accountant can advise you on the red tape and process of adjusting yr taxable income on a weekly basis because of depreciation involved with investment properties.
“Never argue with an idiot, as they will bring you down to their level and beat you with experience”
Flanno40
I have been advised to create a Trust & have all the assets in the Trust’s name.
Do a search in the forum & you will get some more information.
To find out how it will really affect you consult an accountant with the appropriate experience.
I hope that helps ????I am wondering if he just means to reduce your income tax weely rather than getting a refund.
He may also be referring to salary sacrificing?
I dunno really.
Simon Macks
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http://www.mortgagehunter.com.au
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***3 year fixed – 6.49%***Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Well you could go a flat tax rate of 30% (through the use of a comapny), or go up the tax scales before and when you go past the 30% PAYG rate, you switch your income to the comapny tax rate.
We need more details of what he is proposing.
But I don’t think you should listen to him because it’s all illegal! All of it! Everyone pays their fair share of tax [baaa].
Rgds.
Lucifer_au‘Different income tax structure’ is a bit vague. I wonder what he meant?
Terryw
Discover Home Loans
North Sydney
[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
A big thanks to all who posted an opinion!
The feed back from this site is really heartening.
We have elected to see our accountant about this as I’m not fully convinced one way or another on the subject yet.
If and when I grasp the concept/s and they appear relevant, I’ll post them here for all to see. Again, to all,, thanks.[biggrin]Hi All,
Could also be as simple as a PAYG Variation – need more details to be of any use.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Get your account to write a letter to at ATO to take less PAYG tax out of your pay checks. That way the ATO aren’t holding onto your money during the year to take the strain of your cash flow. The ATO doesn’t pay very good interest.
If you transfer existing property to trust’s or change name on the title, you will be up for a stamp duty charge. OPtions are limited.
Make sure you are claiming all possible deductions, especially depreciation. A good account will be able to guide you through this.
Please don’t panic and think you have to take a loss, hopefully if you need to climb out of the deal any capital gain will make up for cash flow problems. Good luck
dd
Hi,
It is possible your friend is on the ball, but, you’ll never know until you get some specific advice.
Generally speaking, individuals are the highest taxed entities, yet having said that, they will also gain the biggest benefit from any loss on the flip-side too.
I come from the other angle… because my investments make money, I want to set up a structure that caps the impact of my profits (and therefore losses too).
You mention a trust, but just be careful as trust losses cannot be distributed which may be a siginifcant disadvantage if you have a lot of personal income (i.e. job) upon which you’ll pay tax while pulling your hair out because you have accumulating trust losses that you can’t access.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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