Hi there,

I've been using the mytax.co.nz website to try and figure out the amount I would take home, if I start getting a second income by renting an investment property out.

I think I'm doing something wrong, but I don't know what, as the calculation page is simple and easy to use.

So on top of my income from my fulltime job, if I add the pre-tax amount of $12,000 to my current income, the amount I take home DROPS below to what I'd take home if I didn't have the extra $12,000!?!

I don't understand how this works?

This initially started out as a "oh of course a second income from an investment property is worth it, but I'd like to find out how much tax I'd pay, to figure out what the overall return on my money will be".

But based on the numbers I got from mytax, I'd take home $906 less each year, even though my income increased by $12,000, which is the rough estimate of the annual rent I'd get from the property.

How on earth does that work? Any enlightenment much appreciated, as I'm getting very confused.

Thanks very much for any advice!