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Re: What is my taxable income If i own a property and I have a salary of $70K

Newbie

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Hi ATO

I am wonering what will be my taxable income if I own a rental property? Here my figures. I have a negative Gearing so I am planning to (70k-3607)= Taxable income 66393. Is this correct? Thank you for your help

 

Purchase Price460,000
Yearly Rental Income13,800
Yearly Interest (1.99 FIX) (16584-(374400/30))4104
Total Rental repayment 16584
rental Expenses9,303
Pre-tax cashflow393
Non cash deductions 
Depreciation building 1993)4000
Depreciation Furniture and fittings0
Total deduction17407
 Rental Income - Deduction -3,607
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Most helpful response

ATO Community Support

Replies 1

Hi @Marcela,

 

We generally do not do individual tax calculations, this is only to provide you with further information.

 

Looking at your income $70000 (work) + $13800 (rental income) = $83800. You mentioned deductions in total were $17407. Your taxable income would be $66393. Thereafter Medicare Levy $66393 x 2% = $1327. Approx tax payable on $66393 = $12044 + $1327 Medicare levy = $13371 payable, less the tax offsets. You should know how much tax credits your employer has withheld by checking your income statement.

 

If you have a spouse their income needs to be included on your return. If your combined income is less then $180000k, then Medicare Levy surcharge will not apply.

 

The offsets available for 2020FY and 2021FY are Low Middle Income tax Offset (LMITO) and Low Income tax Offset (LITO). The Medicare levy, Medicare Levy Surcharge and tax offsets are worked after you lodge your return.

 

Please use the links below -

MyTax 2020

Medicare Levy and surcharge 

LMITO and LITO

Individual tax rates

 

If you are seeking further assistance you can speak with a tax agent. Alternately you can enter your figures into myTax via ATO link on MyGov. This also works out your taxable income and provides an estimate once you press calculate on the last page. You still have a chance to go back over it and submit it thereafter.

 

All the best.  

 

 

 

 

 

 

 

 

 

2 REPLIES 2

Most helpful response

ATO Community Support

Replies 1

Hi @Marcela,

 

We generally do not do individual tax calculations, this is only to provide you with further information.

 

Looking at your income $70000 (work) + $13800 (rental income) = $83800. You mentioned deductions in total were $17407. Your taxable income would be $66393. Thereafter Medicare Levy $66393 x 2% = $1327. Approx tax payable on $66393 = $12044 + $1327 Medicare levy = $13371 payable, less the tax offsets. You should know how much tax credits your employer has withheld by checking your income statement.

 

If you have a spouse their income needs to be included on your return. If your combined income is less then $180000k, then Medicare Levy surcharge will not apply.

 

The offsets available for 2020FY and 2021FY are Low Middle Income tax Offset (LMITO) and Low Income tax Offset (LITO). The Medicare levy, Medicare Levy Surcharge and tax offsets are worked after you lodge your return.

 

Please use the links below -

MyTax 2020

Medicare Levy and surcharge 

LMITO and LITO

Individual tax rates

 

If you are seeking further assistance you can speak with a tax agent. Alternately you can enter your figures into myTax via ATO link on MyGov. This also works out your taxable income and provides an estimate once you press calculate on the last page. You still have a chance to go back over it and submit it thereafter.

 

All the best.  

 

 

 

 

 

 

 

 

 

Newbie

Replies 0

Hi There

thanks a lot for your time! It was very helpful! 

regards 

Marcela