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Updating PAYG tax variation

Discussion in 'Accounting & Tax' started by S0805, 5th Jan, 2016.

  1. S0805

    S0805 Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    333
    Location:
    VIC
    Hi there,

    Generally I submit variation before the start of year. But due to change in tax situation (IP purchase) need to amend my variation. little bit confused on how should I calculate the variation numbers middle of the year. Should I proportionate the figures from my 1st submission by the number of days left in the current Fin year or leave the entire year numbers and add the 2nd purchase???I can see ATO requesting YTD figures on the form...

    Assume PI2 settles on 01/01/16 and variation submitted at the same date. Situation below....

    1st variation
    PI1 100k loan 5% - $5000 interest
    All other PI1 costs
    2nd variation (starting from 01/01/16)
    PI1 100k loan 5% - $5000 interest/6 months (i.e. days between 01/01 - 30/06)
    All other PI1 costs/6 months (i.e. days between 01/01 - 30/06)
    PI2 100k loan 5% - $5000 interest/6 months (i.e. days between 01/01 - 30/06)

    cheers
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,400
    Location:
    Sydney
    Carefully - would be my suggestion so that the variation reflects a realistic and conservative estimate with some fat left in it for the final return. I generally recommend you don't claim basic deductions until the return for example eg unknown repairs, work related etc.

    If I were you I would use the 6 months actuals then model a conservative estimate of expenses for next 6 months

    Prep each property estimate separately then add them together.
     
  3. S0805

    S0805 Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    333
    Location:
    VIC
    thanks Paul. Forgot to update here I end up calling ATO and they've advised for above scenario 2nd variation I don't need to proportionate figures for PI1. But I forgot to ask question about PI2. I assume PI2 settle half a way in year than those costs will need to apportioned accordingly.....

    I get your point about leaving some gap....I never include my work deduction to leave me that buffer....