Fbt vs claiming inrest as expense

Discussion in 'Accounting & Tax' started by melbinv82, 16th Apr, 2020.

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  1. melbinv82

    melbinv82 Well-Known Member

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    I have recently bought an ip. Only 2 months ago. I haven't seen a tax accountant yet . Just a general query

    I am able to salary package investment loan through work. There is no fbt for it. So my interest for ip which will be approx $11300, I will be able to get tax free from my gross income.

    But if I do this, then I can't use interest the way most people do for deducting from the income they generate from the ip.

    My ip is negatively geared, by approx $2000-3000 if I add all expenses+ interest + depreciation - rent. This is rough estimate.

    Has anyone salary packaged their interest for ip before. My max tax rate is 32.5. Is it worth it?

    Thanks
     
    melbinv82, 16th Apr, 2020
    #1
  2. Mike A

    Mike A Well-Known Member

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    doesn't sound like the most tax effective way of structuring it
     
    Mike A, 16th Apr, 2020
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Other exempt benefits would be smarter than using a otherwise deductible expense. There is no fringe benefit as such. You would be reduce salary and also lose the property deduction. A zero sum game.

    I have seen health workers choose to take benefits like a prepaid expenses card they can buy groceries etc with. Often smarter
     
    Paul@PAS, 16th Apr, 2020
    #3
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