Hi
may be ending up paying 100k$ in tax this year….
i feel i should put 60k$ money in super (me 30 missus 25) and buy a negative geared property…
it gives us 16k$ in tax break but less ''assets'' for the future year…./or the money which we can see…
and if i buy a negative geared property i will be taking in more debts….which is a good debt …..
missus doesn't agree with the concept of their being a good debt at all…
what have you guys done???
is their a different perspective?
cheers
Dude.. it sounds like you make a lot of money. Why not spend some of the money to pay a tax accountant to give you proper advice, rather than keyboard experts in OzB forums. It's tax deductible too. Otherwise you get advice like put your money through a tax haven like Panama. :)
Otherwise you get advice like put your money through a tax haven like Panama.
Knowing the bird-brains of OzB, they're more likely to suggest The Canary Islands… :P
thanks for the comments guys
I will put max to super to reduce tax while at same time buy an investment property that is positively geared to reduced risk in case I lose my job.
Wouldn't that just increase the tax burden? Wouldn't it be better to get a "loan" from an offshore tax haven shell company to purchase your investment property at exorbitant interest rates that pretty much cancels out your tax burden in Australia? :)
If it were me in that situation, I'd send what you can to super and see a tax accountant. I personally don't like the idea of negatively geared properties. However, many have done very well out of them in the past.
If you earn like $200k why don't you pay an accountant?
I'd start by purchasing a car-wash business…
with washing machines in the basement to wash money ?
That would definitely help, but step 2 would of course be a self-storage unit for the pallet of money.
Remember to pick up some decent sized barrels from Bunnings too.
Are you an employee with PAYE tax deducted? If not - first step I'd be making sure you've got enough cash set aside to cover your expected bill.
$60k into super? - watch out for the Contributions caps - which is $30,000 for someone under 50, and includes
-employer contributions (including contributions made under a salary sacrifice arrangement)
-personal contributions claimed as a tax deduction by a self-employed person.
You could look at getting a property - but got to weigh up pros and cons. You could prepay interest this financial year. You can do this for money borrowed for shares too - but who knows what is going to happen with anything…
Maybe look into Panama? I heard that's a good place to invest at the moment
Negative gearing generates a tax deduction because you are making a paper loss. You should only do this if you are making money overall due to capital gains (subject to tax in the future).
So only invest in property if you expect values to rise, don't just go for tax efffects. Some properties have real risk of capital loss e.g. Regional, single industry areas (mining, government), high construction apartment areas…
As for other 'tax effective' arrangements: maximise salary sacrifice, prepay any investment loan interest for 12 months in June, you can negatively gear into shares with margin loans or unmargined structured products.
If you are going to do significant ongoing investment and have family members on lower tax rates, then a family trust may be beneficial.
Consult a tax accountant (their fees are also deductible)
Paying high tax is a good problem to have :)
stop making so much money then you won't owe so much tax