Our company tax rate is 30%

My personal tax rate is 47% plus levies which is the top personal tax rate based on remuneration from my job

Consequently, every dollar I distribute from my co is subject to additional top-up tax up to a rate of 47% (unless I took a year or 2 of unpaid or part-paid leave eg when my son arrived)

So for me it’s the difference between 30% and 47%

idk what OP is trying to say here.

buying a vehicle for tax deduction purposes doesn't save you money at all.

its just that instead of paying taxes you can spend that money on yourself for "business purposes"

he doesn't even pay that much taxes with a gross revenue of ~180k to really justify buying a car for "tax deductions" imo

some types of business, sure.

but tradie work is ever green and pays more and more.

even just doing it on the side for writeoffs would be bigly beneficial

S Corp? Definitely has it's tax advantages but I think it's a major gray area legally. Also best of luck getting a home loan or something similar claiming a 75k income.

Just did my business taxes and personal

So I made $172,000 last year with my business.

Paid myself 75k in payroll (paid payroll taxes on that)

+

25k in SEP IRA

So that’s 100k of the 172k in direct compensation

I was able to come up with an additional 60k in write offs… this includes taking a 8k loss selling my Audi when I traded it in.. and the scheduled depreciation on the BMW I purchased. Plus a portion of my rent.. 80% of my car insurance 100 percent of my phone bill and internet.. 80% of the gasoline I bought for the year and some basic business supplies.

Which meant I had to carry over approximately 12k in revenue to my personal taxes.

I had to pay approximately 2k on my personal taxes for the additional 12k in revenue.



So in total I paid approximately 12k total in taxes all in (payroll and end of the year) on 172k in revenue.

Meaning I netted 160,000

Now let’s say you made the same 172k in payroll. I’m gonna take out the 2,000 I paid in supplies for my business

So you made 170k in payroll.

You have been taxed $50,332

To net the same amount I did in my state I would have needed to make 230k in payroll

S Corp? Definitely has it's tax advantages but I think it's a major gray area legally. Also best of luck getting a home loan or something similar claiming a 75k income.

Yeah it's absolutely insane what you can do with a good acountant

I've got myself down to to sub-15% before on 7 figures lmao

S Corps are dope

I’ve been doing it all myself for years

Tradie gotta pay for his own health insurance. Life insurance. Critical illness insurance. Make sure you invoice, and then wait for prime contractor to pay you. Pay state tax. Prime contractor can just punt you and there's no EI for you or even any sort of severance. Buy your own equipment. Track expenses. Don't get paid while on vacation.

Workcel: Complain how your employer has a hybrid work schedule.

That'll be $500 to fix that leaky toilet, thanks.

this thread is proof of how dumb 99% of misc along with majority of working class americans are to taxes

Inb4 visit from the taxman

I don’t even bother playing these games because I don’t want the scrutiny, paid like $90k between corporate + personal taxes and GST flow through last year

Friends with one dude who was playing games and then got a surprise $80k tax bill

You don't have enough cash customers OP

Money needs to be above board to do anything useful with it in any large amount

who is it that's wrong / ignorant?

Down payments cover for a lot.

Go through the process and check back, they do a huge amount of digging into where your down payment comes from and traceability of the funds for exactly these anti-laundering reasons

Go through the process and check back, they do a huge amount of digging into where your down payment comes from and traceability of the funds for exactly these anti-laundering reasons

But he'll have no problem showing his revenue. It's just his actually net income that shows low. He's not saying he's going to get a down payment from someone else

You kind of don't know what you're talking about with this stuff which is totally fine but I'd caution against acting like you do

Cash is basically untraceable. Not sure how they can "trace" that. Money laundering does the exact opposite - you take cash and funnel it through a "legitimate" business.

We’re talking about cash under the table here boyo, that’s what would not be above board — at least that’s what I’m talking about

Corporate revenue is also not personal income though, unless you’re buying property through the corporation — but the only consideration of corporate revenue in my mortgage application was proving that taxes were paid up to date.

If you had what you claim to have, I doubt you’d have this attitude

At what point did he ever mention cash under the table?

We’re talking about cash under the table here boyo, that’s what would not be above board — at least that’s what I’m talking about

Corporate revenue is also not personal income though, unless you’re buying property through the corporation — but the only consideration of corporate revenue in my mortgage application was proving that taxes were paid up to date.

If you had what you claim to have, I doubt you’d have this attitude



Cash that you’ve paid taxes on is traceable through your tax returns, red flags will go up when you have some pile of cash for a down payment and seemingly no tax history on it and it doesn’t align with your reported taxable income

My reply there was in reference to Paul Kreul mentioning not having enough cash customers

100 years ago 90% of taxes were paid by the rich. When 'trickle down economics' we're introduced the middle class got ****ed