Tax - how can I reduce it?

[xander]

Hi everyone,
Can anyone tell me what they have found the total average tax deductibility is for a $300,000 property, in round figures, to give me an idea?

I know that eventually items like depreciation will have to be 'spent' back on the property, but for the sake of this example I'm just after a generalised figure.
Thanks in advance

 

[abel]

Hi Xander,
Yes so buy a lot of property!! As long as you keep buying property to keep an ongoing stream of depreciation your tax exposure should be minimal once you get your portfolio going.
Impossible to answer your question accurately, your accountant would need to do that.
But assuming an improved value of say 150K your straight line depreciation is 3% = $4500 PA and chattel depreciation lets say 15K at an average of 12 % = 1800. So depending on how negatively geared the property was your depreciation tax benefits are $6300 in this particular scenario
Keep in touch