How To Use Tax To Your Advantage With Negative Cashflow Properties

Interest rate rises have significantly affected many property investors in various ways… 

Some investors who might’ve had positive cashflow properties are no longer positive.

If you want to know how we can traverse this critical state of affairs, it is necessary to learn how to adapt so you can leverage it to your advantage.

In today’s episode, we are joined again by our resident tax expert Jeremy Iannuzzelli to discuss the best approach to navigate this current economic climate. We talk about negative gearing, negative cashflow tax deductions, how you can take advantage of the circumstances, and more!

If you love this episode, email us at til@dashdot.com.au, and don’t forget to subscribe, rate, and share this podcast! 

See you on the inside! 

 

In this episode, we cover:

1. Introduction [00:00]
2. The state of the property market during Christmas season [01:44]
3. Positive gearing versus positive cash flow [04:57]
4. The difference between cash deductions and non cash deductions [11:16] 
5. Australia’s marginal tax rate system [15:20] 
6. Tax deductible expenses [19:24]
7. Turning negative property to a positive cash flow property [22:29]
8. The beauty of inflation and compounding returns [25:49]
9. Losses carried forward can be utilized against capital gains [30:51]

 

About our guest:

With over 12 years of experience, dealing with small to medium business enterprises. Jeremy Iannuzzelli learned to channel his focus in the niche market of property investment. Dealing with many property investors, he is able to create effective tax structures in line with the goals and objectives of his clients.

He is also an enthusiastic property investor holding many properties in his portfolio and implementing a combination of strategies. Currently, he is engaged with many investors mentoring them not only in tax but a balanced strategy for them to acquire and hold more wealth helping them well into retirement.

 

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