Borrowing to pay taxes...

It should at best be a matter of the difference between the purchase price and the sale price. If it is sold at a loss, then you should be able to use it as a deduction.

Imagine you brought a TV, used it for a year and then sold it and next thing the tax man is at your door demanding that you pay tax on the sale of your tv.

3xb

Well said, very true!!

Now to whinge...

Well, we are supposed to feel very grateful to be getting our $12000 first home buyers grant....till we think about the $26000+ in taxes we have paid in stamp duty and GST!!

Australia is fine Steve, somewhere better would be Australia without having to borrow to pay taxes. Sorry but it is stupid. If I borrow to buy stuff - that is up to me. If I borrow to pay taxes that I cannot pay out of my income - that is stupid - here or anywhere.

Can anybody show me what I got for the increased tax that I pay - better services? Better roads? What do they do to maintain these - we should borrow more to pay more taxes? The barrel is dry! Everyone should live within their means (if possible) - Australia should do this first.

Sorry it is just dumb for the country to live beyond its means - but dumber for Australia to live beyond our means.

Run for government? I vote!!! And here is my protest

I am looking for feedback, but maybe I am the only person who thinks the government should not take money we don't have.

Ed

I agree Ed,
Our only real protest is our vote - But sometimes, not even that is very useful !!!
Because it might tell one party/person we do not like them, and the other person/party gets in by default or by preferences votes When what we wanted to express in our protest vote is totally missed

Anyway,
I agree it is all way to high in taxes, and it will most likely never change, (Yes GST was supposed to makea difference) !!!
So till we vote with out feet and stop buying and building houses totally - only then might they ask why?? But till then, what else are they think?

I have a good accountant and they just emailed me this as an end of year checklist - with the dropping tax rates you might be able to claim something this year you will get a better rebate.

This is the personal stuff, but there is also business stuff if you want me to send it to you just PM me.

Tax saving strategies prior to 1 July 2007
Accelerating tax claims
As personal income tax thresholds are set to be increased from 1 July 2007, there may be an additional advantage to be had by accelerating any income tax deductions into the current income year.

The tax rates for resident individual taxpayers for the 2006/2007 income year are as follows:

Income threshold Tax payable

0 – $6,000 Nil

$6,001 – $25,000 Nil + 15% on excess over $6,000

$25,001 – $75,000 $2,850 + 30% on excess over $25,000

$75,001 – $150,000 $17,850 + 40% on excess over $75,000

$150,001 and over $47,850 + 45% on excess over $150,000

Note: The Medicare levy is in addition to these rates

Common work-related claims made by individuals

The following outlines common types of deductible expenses claimed by individual taxpayers, such as employees and rental property owners, plus some strategies that can be adopted to increase deductions for the 2006/2007 income year.

1. Depreciable plant costing $300 or less

Salary and wage earners and rental property owners will be entitled to an immediate deduction if plant costing $300 or less is purchased before 1 July 2007.

Some purchases you may consider include:

u fax machines;

u beepers and pagers;

u books and trade journals;

u briefcases/luggage or suitcases;

u calculators, electronic organisers;

u software;

u stationery;

u tools of trade.

2. Clothing expenses

Purchase or pay for work-related clothing expenses prior to the end of the income year, such as:

u compulsory, non-compulsory (and registered), occupational specific and protective clothing;

u other expenses associated with such work-related clothing such as dry cleaning, laundry and repair expenses.

3. Self education expenses

Consider pre-paying the following self education items before the end of the income year:

u course fees (but not HECS-HELP fees), student union fees, and tutorial fees;

u interest on borrowings used to pay for any deductible self education expenses.

Also bring forward purchases of stationery and text books (i.e., those which are not required to be depreciated).

4. Other work-related expenses

Employees can prepay any of the following expenses prior to 1 July 2007:

u union fees;

u subscriptions to trade, professional or business associations;

u magazine and newspaper subscriptions;

u seminars and conferences;

u income protection insurance (excluding death and total/permanent disability).

Note: When prepaying any of the expenses above before 1 July 2007, ensure that any services are provided within 12 months of the payment and before 1 July 2008. Otherwise, the deductions must be claimed over the period of the prepayment.

And as with everything -

Here's my Disclaimer

See your accoutnant for personal advice that might apply to your personal situation.
Steve