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.