Re: Will an instant asset tax write off decrease my borrowing power?
Posted: Mon Jun 10, 2019 3:43 pm
Hello Joe. Welcome to the forums.
Not necessarily, some of our lenders can add back these special one-off tax write-offs to your taxable income to increase your assessable income. As you may be aware you can claim the tax write-off of up to $30,000 for each asset. For example, if your taxable income was $100,000 and we add back the $15,000 and $25,000 write-off, your assessable income will be $140,000. These are considered to be capital expenses and expected to help you earn more revenue from your business.
For self-employed borrowers, we can either go with a full doc loan with two years tax returns and business financials or we can go with a low doc loan.
Typically, we can add back the following expenses to your taxable income:
Give us a call on 1300 889 743 or fill in our free assessment form to discuss your situation and find out if you qualify.
Cheers,
Not necessarily, some of our lenders can add back these special one-off tax write-offs to your taxable income to increase your assessable income. As you may be aware you can claim the tax write-off of up to $30,000 for each asset. For example, if your taxable income was $100,000 and we add back the $15,000 and $25,000 write-off, your assessable income will be $140,000. These are considered to be capital expenses and expected to help you earn more revenue from your business.
For self-employed borrowers, we can either go with a full doc loan with two years tax returns and business financials or we can go with a low doc loan.
Typically, we can add back the following expenses to your taxable income:
- Extra superannuation contributions.
- Losses carried forward from prior years.
- Negative gearing deductions from your investment properties.
- One-off expenses such as moving your business or a lawsuit.
- Instant asset write-offs (e.g. the special $30,000 instant write-off in 2019)
- Trust distributions to family members for tax purposes.
- Depreciation.
Give us a call on 1300 889 743 or fill in our free assessment form to discuss your situation and find out if you qualify.
Cheers,