Negative Gearing Ė itís not to your benefit!

Written by Naomi Warne


The concept of negative gearing has been originally developed to encourage real estate investment in Australia by allowing any income losses from property investment to be deductible from other income as a tax benefit. This means thatrepparttar taxable income ofrepparttar 147820 owner will be reduced afterrepparttar 147821 deduction and thereforerepparttar 147822 total tax payable is also reduced.

In view ofrepparttar 147823 fact that many ofrepparttar 147824 profits from property investments are usually obtained as a capital gains atrepparttar 147825 time whenrepparttar 147826 property is sold, but do not generate positive cash flow from rentals duringrepparttar 147827 course ofrepparttar 147828 holding period, negative gearing therefore came in to address this issue.

You lose either way However,repparttar 147829 flaw with negative gearing lies in its concept as well. If an investment generates a positive cash flow,repparttar 147830 increased income will makerepparttar 147831 investor liable to pay more taxes as well. Inrepparttar 147832 end,repparttar 147833 investor loses either way. If he makes money from positive cash flow, he has to pay part of it off in taxes, while negative cash flow will take money out of his pocket. Therefore, with a negative geared property, it is not possible to get a positive cash flow and pay less tax atrepparttar 147834 same time.

No guarantees on property value appreciation Investors who are encouraged to put their money into negative geared property should think twice. As these properties are expected to generate profits only through capital gains,repparttar 147835 value in capital gains should then be greater thanrepparttar 147836 total losses incurred overrepparttar 147837 course ofrepparttar 147838 holding period. However, there is no guarantee thatrepparttar 147839 value ofrepparttar 147840 property will appreciate, or at least appreciate enough to cover your losses. Also, you canít possibly use your expected future profits now as it is not been realized yet.

Managing Your Home Based Online Business - 1

Written by Roy Thomsitt


Working at home in their own business is something millions of people strive for and dream of, but most inrepparttar Western world never actually get around to doing it. For those who do achieve it, how do they adapt if they have changed, for example, from an office environment, where they were employed, had a strict routine imposed on them, and were told what to do allrepparttar 147699 time by those above them inrepparttar 147700 company?

How do you manage working alone from home? Now, that is not "manage" inrepparttar 147701 "how do you get by?" sense. It is manage inrepparttar 147702 manager/staff sense. You work at home alone, you arerepparttar 147703 boss of your home based business. So who or what is there to "manage"?

The profitability of any business, sole proprietor or multinational, depends onrepparttar 147704 successful management of a number of omnipresent departments: marketing, finance, human resources, computing, purchasing, and, if appropriate, research and development, and production.

If you are working at home, alone, online, you have all those management responsibilities and functions rolled into one. Your management task is perhapsrepparttar 147705 most difficult of all. You have to manage yourself. If you have never thought about it like that, then I suggest you consider it for a while. To run a successful business, you need to have a grasp of allrepparttar 147706 elements of that business, and how they interlink. That is as true with a home based online business as it is with a large corporation. Managing all those different elements ofrepparttar 147707 business, I think you will find, is not as easy as it may sound. Managing yourself is definitely not as easy as it may sound.

Working at home for many can mean an escape fromrepparttar 147708 managers above them who may have made their lives a misery, or at least less satisfying, for all of their previous career. But does working at home mean an escape from management altogether? No, it does not. At least, if you want a more profitable home based business, then management will be every bit as important as before. In fact, more important.

Why more important? Now it is your business. If you had shares in a company, would you not want good management to increase profits and thus your dividend and capital? Of course you would. You are not earning profits for others, unless you have family responsibilities. Okay, you will pay taxes, but that's not your biggest concern when you get started. You just want to get started and make some profits.

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