Tramontana Blog

Posts tagged “Tax”

Negative Gearing - Does it Work?

By sceona.

Negative Gearing Photo

Negative gearing is something we love to talk about when it comes to properties. It is a buzz phrase thrown around at get togethers causing all to nod as if they have uncovered the holy grail. But many don't really understand the concept. Basically, negative gearing is where you borrow to buy a property, the amount of rent you receive from the property in a year is less than the amount required to pay the loan and all other associated costs like rates, insurance and maintenance...

Create Wealth or Save Taxes?

By sceona.

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At this time of year the catch cry of many business owners is: 'I need to spend money to save on tax'.

This kind of thinking is inherently flawed:

  • Firstly you have to spend the money, which can cause all sorts of cash flow problems.
  • Secondly every dollar you spend you will only realise a saving of say 30% being the company rate of tax.
  • Thirdly reducing your profit to not pay tax will ultimately stunt the growth of your business...