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Rental Negative Gearing Calculator - eknowhow Accounting The

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Rental Negative Gearing Calculator - eknowhow Accounting The Powered By Docstoc
					                  NEGATIVE GEARING - TAX BENEFIT CALCULATOR
                  Based on Full Year Income & Deductions

                     You must Enter something in each of the following cells
                                                                                                  New with                  Old
                                                                                                  Builders              Constructed
                  Property & Loan Details                                                       Construction              Before
                                                                                                Cost Schedule            6/30/1997
                  Building Construction Costs                                                   $     200,000         Not Applicable

                  Property Value                                                                 $     300,000
                  Less Deposit Paid                                                              $         -

                  Loan Amount ( Interest Only )                                          100% $        300,000
                  Interest Rate on Borrowings                                                            7.00%
                  Annual Interest                                                                $      21,000

                  Rental - Profit & Loss Schedule

                  INCOME
                  Rent Received                        Per Week $ 280.00                         $      14,560         $      14,560

                  EXPENSES - CASH
                  Agents Commissions                                                       6% $            874         $         874
                  Bank Charges                                                                $            200         $         200
                  Interest - Loan                                                             $         21,000         $      21,000
                  Insurance - Building                                                        $            500         $         500
                  Council Rates                                                               $          1,000         $       1,000
                  Water Rates                                                                 $            500         $         500
                  Repairs                                                                     $            -           $       2,000
                                                                                              $         24,074         $      26,074
                  EXPENSES - NON CASH
                  Capital Allowance Deductions                                           2.5% $          5,000         $         -
                  Depreciation - Fixtures & Fittings   $ 10,000                         10.0% $          1,000         $         -
                                                                                              $          6,000         $         -
                  Total Expenses - Deductible                                                 $         30,074         $      26,074

                  NET (LOSS) / PROFIT FOR YEAR                                                  -$      15,514        -$      11,514

                  PAYG - INCOME TAX BENEFIT CALCULATION                             Loss        -$      15,514        -$      11,514

            a)    Assumes Property owned by one Individual
                  What is your Income Tax Rate ?
                  Refer Income Threshhold Table
                  Enter Your Tax Rate                                                                      0.0%                  0.0%

                  ESTIMATED TAX BEFENIT / (PAYABLE) - 1 Owner Only                               $          -          $          -

            b)    Assumes Property co-owned by two Individuals                   1/2 of Loss    -$        7,757       -$        5,757
                  What is your Income Tax Rate ?
                  Refer Income Threshhold Table
                  Enter Your Tax Rate                                                                     47.0%                47.00%

                  ESTIMATED TAX BEFENIT / (PAYABLE) - Owner A                                    $        3,646        $        2,706

                  Enter Your Partners Tax Rate                                                            30.0%                30.00%

                  ESTIMATED TAX BEFENIT / (PAYABLE) - Owner B           $                                 2,327        $        1,727
                  TOTAL ESTIMATED TAX BENEFIT/(PAYMENT) FOR BOTH OWNERS $                                 5,973        $        4,433

                  NET ANNUAL CASH CONTRIBUTIONS
                  OUT OF POCKET CASH CONTRIBUTION FOR YEAR                                      -$        9,514       -$      11,514
                  LESS - TAX BENEFIT AT END OF YEAR - IF 1 OWNER ONLY                            $0                    $0
                  LESS - TAX BENEFIT AT END OF YEAR - IF 2 OWNERS                                        $5,973                $4,433
                  NET ANNUAL CASH SURPLUS / ( DEFECIT )          Defecit                        -$       3,541        -$       7,081


The Rental Negative Gearing Estimator is designed to give you an estimate of the Tax Benefit and Cash Flow based on your entered details.
This is not a substitute for professional advice. You should consult a professional advisor if you require assistance making decisions.
PBC Pty Ltd is not liable in any way, to any person, for the accuracy of this estimator, they way in which it is used or the results of its use.

				
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