How does tax work with positive cash flow properties and how is it possible to have a positive cash flow property and not pay any tax on the income.
While I’m not an financial advisor I explain the main concepts behind how this works in todays video.
In short:
Rental income – expenses – depreciation = profit/loss
Profit or loss is then added or subtracted to your taxable income.
0:00 – Introduction
0:48 – What is positive cash flow?
1:20 – How does tax on positive cash flow work
2:48 – How depreciation affects the tax you pay
Recommended Videos:
How Depreciation Affects Capital Gains Tax (Ep115) – https://www.youtube.com/watch?v=1rPKN_kyc2c
Positive Cash Flow Explained Simply (with Pen and Paper) – https://www.youtube.com/watch?v=GM8rSBbnhTw
Negative Gearing Explained Simply (with Pen and Paper) – https://www.youtube.com/watch?v=rQ9aYexpWOM
http://onproperty.com.au/820 – Visit the site for a full transcription and downloadable audio version of this video.
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