What is the difference between "net rental property loss" vs "deduction" against wage

Discussion in 'Accounting & Tax' started by TSK, 17th Nov, 2018.

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  1. TSK

    TSK Well-Known Member

    Joined:
    14th Apr, 2018
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    Location:
    VIC
    Hi everyone,

    So I was playing around with the detailed tax calculator and I'm trying to understand why there is a large discrepancy between if I claimed 5000 net tax rental loss vs 5000 of work deductions. keeping all other variables constant the difference is ~500 vs ~3500.

    figure used:
    income: 60K (took a year of paternity leave)
    tax: 15K
    Medicare: 1200 (one dependent child)
    have SFSS loan (i was young and stupid....had a great time though)
    spouse:70K (this is a guess but should be reasonable close)
    My net rental loss 5000

    I suspect that they are treated different, just trying to understand how.

    TSK
     
  2. thatbum

    thatbum Well-Known Member

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    Location:
    Perth, WA
    Net investment losses are grossed up for certain repayment purposes like HECS - maybe the SFSS is something along those lines?
     
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  3. TSK

    TSK Well-Known Member

    Joined:
    14th Apr, 2018
    Posts:
    625
    Location:
    VIC
    Ahhh. Yeap. That would would be it.: Income tests
     
  4. Paul@PAS

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

    Joined:
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    Posts:
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    Location:
    Sydney
    Adjusted Taxable Income is used as a method to standardise "income" for many Departments. This adjusts for fringe benefits, investment and rental losses and even ordered child maintenance. Student loan repayments are based on ATI
     

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