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Income tax question, Think I have more tax to claim than I am paying?

Discussion in 'Real Estate' started by benshelz, 5th Feb, 2011.

  1. benshelz

    benshelz New Member

    5th Feb, 2011
    Perth WA
    Hi All

    I am at a bit of a loss, I live in North West WA and am moving down south. I am renting out my house here and have 1 in QLD.

    The QLD one costs $2800 a month and this one costs $4070 a month.
    The QLD brings in 1350 a month but the one here will bring in $9960 a month (2300 a week, thanks mining boom).

    When I work it out with my salary of $116k I think I am actually claiming more in tax due to interest than what I am paying, I estimate $31k from salary and rents will need another 40k tax at end of year. If I am already paying 31k and have 70k of interest claimable without all the other claims I am already past what I am paying in tax?

    My wife also is half owner of the one bringing in 9960 a month so I will only be taxed half of that at full rate as she does not work.

    Can someone please explain to me where I am going wrong here? Please not too many big words lol.