Hello- I am contemplating selling an investment property, negatively geared, I have held with my wife 50/50 for 14 years. I would like to know exactly what it has actually cost me each year allowing for the amounts received back in our annual tax refunds. In our tax refunds I am not sure how to separate out the amount attributable to this property as we have another property, and work deductions too, effecting the total refund each year. I have totally confused myself with calculations and wondering if there is a simple spreadsheet or tool that I can access somewhere. Ultimately I want to know if I am winning or losing over the 14 years. Any help is most appreciated.
Work out what the taxable loss was from the property each year and multiply this by your marginal tax rate for that year. This should give you what you saved in tax approx.
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
Hi IJC,
Wouldn’t these amounts be broken down for each property in your Tax Returns each year? Are these available to you?Benny
I’m actually working on a ultimate investing spreadsheet set at the moment with all different calculations. I was looking at the formula to work out CGT and it’s well @ucking complicated but in your case with the 50/50, So many different tax rates over the years. Pay someone to work this out for you. I do have tp ask though. Has the property been negatively geared for the full 14 years!
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Thnx all for your responses. I will follow your suggestion Terry for calculating the amounts, as ‘ball park’ is close enough for my purposes. And yes Benny I can find the amounts to work off in the previous tax returns, so will get my hands on them. Dark Knight I’m a bit embarrassed to admit that yes it has been neg geared all that time. I started out with it too highly geared and it is now lowly geared, and probably the last few years it would have been neutral except for totally unforeseen large expenses due to termite damage- ouch! I think they are beaten now- fingers crossed! As a property investor I make a good social worker, and that’s about it :)
Hope you made a large capital gain in that case ijc
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
Thnx Terry. Maybe just enough to break even. Unfortunately this is the Sunshine Coast, not Sydney or Melbourne. Can’t complain though, I love where I live. Cheers
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