Salary Sacrificing – rental expenses ?
Wondering if there are many investors who are salary sacrificing their rental expenses ? We are looking closely at this and would appreciate any comments .Mark
If you own the property jointly and your income is in a higher marginal tax bracket, then salary packaging rental expenses gets you a benefit equal to the difference in your marginal tax rates.
ie,
If your tax rate is 46.5% and your partners is 16.5% then the benefit is 30% of what you can salary package.
hope this helps.
ross
My wife salary sacrifices our mortgage expenses on our PPOR. She was also given the option of doing it with rental cost.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Originally posted by trajik:If you own the property jointly and your income is in a higher marginal tax bracket, then salary packaging rental expenses gets you a benefit equal to the difference in your marginal tax rates.
ie,
If your tax rate is 46.5% and your partners is 16.5% then the benefit is 30% of what you can salary package.
hope this helps.
ross
Thanks Simon and Ross,
Ross, its seems so very simple the way you have explained it.
thanks
Mark
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