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RE: How to pay 0% tax in Australia, legally without owning a business.

in #investing8 years ago

this applies pretty much everywhere....

In canada we have a similar system where the depreciation from capital assets reduces your taxable income, which can also apply to business assets. For property, you get a 3.5% deduction per year

so a $100,000 property would be $3500 the first year, $3377.50 the second year, and so on until there's no value left.

meanwhile this property generates you rental income, but will likely end up with an overall negative income, which will further reduce your income

technically doing this IS a business though, although you never need to officially register or incorporate. I'd suggest doing so though (at least to an asset management company of some form) after about a half dozen properties because that will further benefit you tax wise.