Tips on reducing tax

Hi Forum Members,

Is it possible to claim tax reduction on IP in advance?
My Accountant has always told me that I cannot claim in advance and that I have to wait until the end of financial year to do so.
However, I had a meeting with a financial planner who said the opposite?

Who is telling me the truth?

Also, can you please share tips on expenses against IP that one can claim?
I feel that my Accountant leaves a lot of things.....

Any recommendation for a good accountant/ financial planner?

Thank You All

 

it is possible to vary your employer tax instalments to a lower amount if you are in a negative gearing situation.

 

Thank you Terry,
How does one know if they have a good accountant to handle their tax affairs?

 

start reading the posts in the tax section on the forum and see if anything applies to your situation and if so has your accountant had the same or a different view.

 

Have a look into withholding variations. Its a form to submit to the ATO promising that’ll make a loss on property so you get less PAYG tax withheld instead of a bigger return at tax time.

I’ve heard conflicting opinions about it putting you at higher scrutiny or audits, but that might just be a rumour or fear mongering.

 

I have been reading a lot of tips in the forum and I am learning a few things.
Currently paying PI on my IP with NAB.
Can I convert this to IO without an application?
I am getting 380/week rent, 390K loan with a 530K valuation. Interest rate on that one is 4.49.
Haven't seen much tax reduction from this IP.....
Hoping to put the extra $$ on the principal to my PPOR

 

In terms of splitting loans with ANZ and NAB, that would be a new loan right? Can this be done without another application?

 

You can also pre-pay interest for the following year if you believe your overall income is going to be higher in the current year than the next e.g. if you have a property in your partner's name and they goes on maternity/paternity leave the next year/resign from a job to travel/etc. it is usually beneficial to pre-pay interest in the year they're still working when gross income will be higher.

- Andrew

 

I asked the planners about debt recycling yesterday and he had no clue whatsoever........
His response was...... "There is no such thing"