hey guys
i have a rental property get an income of $200/week, and interest rate charges + water etc are $200 a week= so net i approx $0
However for contract i need to declare my estimmated taxable income for the year. So say if i make 50k, does that mean my taxable income is 50k (and dont have to add the rental property income given my net profit is zero?)
how does $200 a week double his income? its $10,000 per year. and I think the tax deductions funnysht has will make it $0 extra taxable.
I must have misunderstood his question. :)
Yes, your taxable income is 50k. It is more common to ask for your gross income but I have no idea what contract you are filling out.
its just an affadvit i need to sign to get a discount. so basically they said if my TAXABLE INCOME is less than 55k i get a discount
so bascially you mean taxable income is after the tax deductions are taken out?
Correct. Taxable income is $50k. Gross income is $50k + $10400 = $60400.
You should see a property accountant if you do not understand this simple thing.
The accountant will also add additional value in ensuring you are claiming everything you can etc.
If your revenue is breakeven with your expenses it is not taxable income… go ask an accountant lol.
You have to add the income and the minus the deductions from your income.
The costs incurred for your rental property don't just come straight of income. They reduce your taxable income. That is, for every dollar it costs you, you don't get that dollar back, you get whatever your tax rate back
It is much more complicated than that;
Your rent(income) is $200/week
however
Your expenses is not just as simple as 'interest' and 'water'. Generally any expense that you incur for this rental property is deductible, so it may include council rates, land tax, strata costs, repairs, landlord insurance, property insurance, accounting, managing agents fees, capital/plant depreciation and potentially more.
If you haven't factored those in, then your taxable income should be much less than $50,000
NO, IIUC your income is 100K (wages and property rent etc) and you then claim 50K in expenses.