ways to minimise personal income tax

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asou
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@asou
Join Date: 2015
Post Count: 23
July 1, 2015 - 10:59 am
If I am on a high income tax bracket (40%), is there any other ways to reduce my tax significantly except for buying negative gearing properties?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 1, 2015 - 10:56 pm
The only way to pay less tax is to have a lower taxable income.
2 ways to have a lower income are
1. earn less or
2. claim more deductions
Earning less could be
1. working work
2. spending on things that are deductible
3. salary sacrificing into super
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Corey Batt
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@cjaysa
Join Date: 2012
Post Count: 1,010
July 2, 2015 - 7:53 pm
Property related ways – depreciation. Making a loss just from interest/expenses just to get a deduction is a mugs game.
In saying that, buying just for depreciation isn’t that a smart an idea either!
Your earning potential is unlimited, whereas your saving ability is limited.
- This reply was modified 8 years, 10 months ago by Corey Batt.
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asou
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@asou
Join Date: 2015
Post Count: 23
July 2, 2015 - 8:32 pm
Hi Corey,
I was thinking exactly the same thing. I don’t want to buy negative gearing properties, I also don’t want to buy off the plan just for depreciation. Salary sacrificing into super isn’t good cos I don’t get the money until 65. There is really no way to get any tax advantage as an employee. This is exactly what Robert Kiyosaki explains in the cash flow quadrant. Only business and Investment/Real Estate can get tax advantages.
Lloyd James Ross
Participant
@lloydjamesross4
Join Date: 2015
Post Count: 5
July 6, 2015 - 4:55 pm
Don’t always be in a hurry to save tax. Many people don’t realise that to save 33% you have to spend 66% so strategies purely geared around saving tax are always floored. Tax deductions are merely a way to incentivise business spending and investment, which includes property investment.
The benefit of securing a tax saving through depreciation and negative gearing is to assist with covering the operating costs of a property while the investor waits for capital growth to occur.
With interest rates being so low at the moment, tax savings secured from non-cash charges like depreciation create a neutral and often positive-cashflow property. This allows for sensible cash flow mgmt until capital growth occurs.
- This reply was modified 8 years, 10 months ago by Lloyd James Ross.
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11 Facts You Need To Know About Property Investing