Hi, Looking for some advice/tips/suggestions to reduce taxable income. And even some investment strategy thoughts. My partner and I have a few properties and haven't really ever had a strategy. We have 4 properties, 2 of which we used to live in and have just got 2 more as we needed to invest in something and some good opportunities presented...but as it turns out with interest rates so low, the growing offsets and rental returns so good we are quite cashflow positive and like everyone we dont want to be paying the ATO. We still have borrowing capacity and keeping an eye out for opportunities but we are at a point where we are looking for some help with strategy/offsetting taxable income somehow. I was thinking of we built new we would get some depreciation to help with the tax problem but with the building momentum at the moment that's a good couple of years away before it's built. Should we be investing in something else or more property or start a business or what can we do to be able to write off some of the taxable income, by putting it to good use for us and our future rather than just collecting it for the ATO?
Focus on enlarging your asset base and making the best investments you can. Making decisions based on tax savings may not give you the best outcome.
I couldn't agree with this more. Capital growth and cash flow are the two biggest advantages of purchasing an investment property. Tax benefits are simply the icing on the cake, not the cake itself.
I'm not saying make me pay no tax, Just wondering if we can advance ourselves by using the extra tax money we are having to pay to put into something else rather than just pay it as tax and lose it. we would like to start our own business but haven't really found exactly what we think would work for us. Just trying to get a strategy going forward and being able to get some tax benefits along the way if we can. scenario 1 pay 10k tax have nothing extra going on. scenario 2 pay 3k tax, created a business that while will cost a bit to setup will create another 'tax problem' later but has given us another income stream
