Did you know that the right investment property could not only save you thousands of dollars a year in tax, but you can actually get those tax savings back in your pocket every week
NOW THAT’S WORTH READING MORE ABOUT.
A lot of you may already know that the RIGHT TYPE of investment property can create thousands of dollars a year in tax savings, but what many people don’t know is that you can actually get those tax savings back in your pay packet every payday rather than one lump sum at tax time.
Self-Funded Freedom clients already know this but the reality is that a large majority of Australians who own investment properties have no idea that this can be achieved. Getting those tax savings back in your pay now not only helps dramatically with your cashflow but importantly, it can help pay down your existing mortgage on your own home much faster, potentially saving you thousands of dollars in interest.
The ATO has produced a form called an Income Tax Withholding Variation (I.T.W.V) and this form does a calculation of your tax savings from your investment 12 months in advance. It then divides it into 52 weeks, and goes through your pay clerk at work, and you will then receive the money in each pay now (whether it be weekly, fortnightly or monthly)
Now of course there are some people out there who say that they would rather wait until the end of the year to get the tax back in one lump sum so they can go on a holiday or buy a new fridge etc.
However, that money is far more powerful coming into your pocket every payday & sitting in your home offset account, instead of sitting in the coffers of the tax department for 12 months before you receive it.
BECAUSE…Interest on your home mortgage is calculated daily (it’s charged monthly but calculated daily), so ANY extra money you can use to offset your daily interest charge has a huge compounding effect over time.
If you or someone you know would like to know more about how you could save thousands of dollars in year in tax and pay your own home off years faster without having to change your lifestyle, call or email us now for a free assessment.
Ph 1300 69 37 33