Tax breaks , incentives & allowances your entitled to

Discussion in 'Wealth Creation & Management' started by renovator, Jun 16, 2014.

  1. renovator

    renovator Well-Known Member

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    Should you take all the allowances, tax breaks & entitlements you are offered ?
     
  2. col0016

    col0016 Active Member

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    I'm going to say yes, but qualify it by saying I don't think there should be any.
     
  3. renovator

    renovator Well-Known Member

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    I wish there was more
    There is a need for them col but i feel they are abused
     
  4. REDBACK

    REDBACK Well-Known Member Silver Stacker

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    Thats a no brainer for me,i vote yes.
    And more if i can

    REDBACK
     
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Of course you should.
     
  6. col0016

    col0016 Active Member

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    There is undoubtedly genuine need for help and at the moment that help is provided by the government. However, overall tax reductions are "fairer" than tax breaks; incentives arguably create a misallocation of resources; and many people who don't need them (like me) get allowances that disincentivise working and pay for social lives and drinking (I'm at uni and see people spend their youth allowance at night clubs every week).
    Personally I get almost as much from the gov every fortnight as I do from working so it effectively doubles how much I get paid per hour. If I work over 10 hours a week I lose 50-60c per dollar I earn so unless work is desperate I don't bother. Before I got this I worked 25-32 hhours while "studying" full time and now I only do 12 hours and waste the other hours on the internet.

    I think it should only be available to those who truly need it, not people who drink it away or, like me, use it to go on holidays.
     
  7. renovator

    renovator Well-Known Member

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    col thats bad ....very bad . where u going next ? :p:
    You could always have a moment of guilt/ clarity & stop recieving it . Send them a letter im sure someone more needy than yourself could use it .
     
  8. renovator

    renovator Well-Known Member

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    I thought you were against sucking the public teat ?
     
  9. col0016

    col0016 Active Member

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    Government funded 20 day trip to Japan in about 2.5 weeks.

    I know it's bad, I openly speak against it and I spoke to somebody at centrelink about the fact that I don't actually need it and she assured me I'm "entitled" to it. I'm not too fussed tbh since I've been paying taxes since I was 16 and am sure I'll have paid it all back in within 5 years of graduating anyway.

    I'm a poster boy for the right. I grew up with a single mum in a low socioeconomic area (she actually did need help being abandoned with debt and 2 boys under 3 so I do empathise and understand some people do need help) but that doesn't change the fact that I don't need government assistance, and if I don't then there is absolutely no reason that middle class students/drop outs/bludgers should be getting it. The burden should fall on their families and the government should only be used as a last resort.

    Instead we have people like me who go on tax payer funded 2 month holidays back packing around the US lol.
     
  10. col0016

    col0016 Active Member

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    I think he's against the state sucking his teat.
     
  11. willrocks

    willrocks Well-Known Member Silver Stacker

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    I'm against the existence of any public teat.

    But hey, if it's there might as well suck it for all it's worth. Because it's almost a given that you' ll pay more than you get.
     
  12. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I am opposed to the entitlement mentality. I am opposed to the flawed decision making processes that are inherent in our Democratic system of government where government largesse is used as a re-election strategy. I detest taxation. However, under our current legislative framework, there are tax breaks, incentives and entitlements that genuine and productive individuals can legally claim and should.

    Bludgers on the other hand are neither genuine nor are they productive.

    All that is beside the point however - my preference is for the public teat to be severed. I would applaud the abolition of every single entitlement/allowance one by one if it would be complemented with the abolition of every single tax likewise. :)
     
  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    If it really unsettles you then don't claim it. :/
     
  14. col0016

    col0016 Active Member

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    It's too late now. Now I know how politicians feel with their free overseas trips.
     
  15. Yendor

    Yendor Member

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    ^^This.

    I claimed Youth Allowance over the winter while I was at Uni (in Summer I had enough work that I couldn't claim Centrelink). But at <$300/fortnight, the tax on my first year full-time paid off all the money I received from the government throughout Uni (probably including those 2x $900 bonuses Rudd was throwing around).
     
  16. AngloSaxon

    AngloSaxon Active Member

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    Please don't use the term 'tax breaks' it is a meaningless term used by the media as a catch all for supposedly rich people dodging taxes.

    Deductions are for money spent in obtaining your income. Claim them. To not do so is illogical as you're being taxed on an income higher than you really had to spend on actual costs of living and recreation.

    Incentives? Define.

    Allowances. If your employer pays them, take them. It's more income.

    Offsets. Claim these if you can, definitely! Directly lowering your tax burden, these are a great item if you qualify for them.
     
  17. 97guns

    97guns New Member

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    take every deduction they allow you, i have not paid any income tax in 4 years on around 65K a year income from rental property and it is all legit

    it can be done, i am living proof
     
  18. Bargain Hunter

    Bargain Hunter Member

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    97guns, care to elaborate how you pulled that off? I'm all ears mate.
     
  19. 97guns

    97guns New Member

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    i live off rental income and take every deduction available to me, my properties are 70 miles way and here in the states we can take a standard deduction for mileage with no cap, they allow .56 per mile with no need to show receipts, their rules not mine.

    i have 5 properties that i "can" see every week if i wish and i do just because i can say that i do, i take 4 trips a month good for $78 a trip, heck sometimes i'll go more, nowhere in the rulings states i have to be a smart landlord. i also have 2 mortgages that i deduct the interest on and they allow for depreciation of around $3K a year per property. i never skew any of my numbers or hide any rents, they are all legit.

    this year will be tax free no problem again because i had a pipe break in one of the houses for 10K worth of work that i have receipts for, insurance paid me off 13K and i pocketed 150oz of silver

    all my excess monies go to metal every month, next year i may have to pay because i added another property earlier this year but i can always make more trips there if i have to
     
  20. dccpa

    dccpa Active Member

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    Not sure where you are getting your information, but the only thing you wrote that is correct is the .56 mileage rate. You have to prove every rental mile if the IRS agent wants you too. Your say so is not worth anything and record keeping is a requirement. The $10,000 spent to repair/replace the broken pipes is not deductible because you were reimbursed and the excess $3000 reimbursement is income. Give me five minutes with your records and I can catch any fraudulent mileage. It is much easier than you would imagine.

    From IRS Publication 17

    "Insurance and Other Reimbursements

    If you receive an insurance payment or other type of reimbursement, you must subtract the reimbursement when you figure your loss. You do not have a casualty or theft loss to the extent you are reimbursed."

    From Publication 463

    "Table 5-2. Daily Business Mileage and Expense Log Name:
    Odometer Readings Expenses

    (City, Town, or Area) Business Purpose Start Stop Miles
    this trip Type
    (Gas, oil, tolls, etc.) Amount






    Weekly
    Total
    Total
    Year-to-Date"
     

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