Hi,

Just a quick note.

The ATO notified that rental properties will be one audit focus for 2004, as it has been in past years.

They list some common income tax deduction mistakes.

Top of the list is the following:

Claiming the cost of carrying out initial repairs – such as rectifying damage, defects or deterioration that existed at the time o…[Read more]

Hi Misty1,

My pleasure. I am happy that you got some benefit from it.

I am based in Sydney, more specifically the Hurstville area.

You or anyone else are welcome to visit my website and contact me if you wish.

Regards,

Glenn Wallace
Chartered Accountant, Business Adviser and Registered Tax Agent.
http://www.businessadviser.com.au

Hi,

I wrote the following almost a week ago and decided not to post it as it probably was too wordy.

Anyway seeing as I have written it I might as well post it, as someone may gey some benefit from reading it, although it may be questionable that it sheds any further light on the original question.

Hi,

I don’t believe that the original…[Read more]

Hi,

The Tax Office view is that:

Expenditure for repairs you make to a rental property may be deductible. However, the repairs must relate directly to wear and tear or other damage which occurred as a result of renting out the property.

You can read further details…[Read more]

Hi SMTM,

My pleasure

Regards,

Glenn Wallace
http://www.businessadviser.com.au

Hi Confused SMTM,

The areas of trusts can be quite complex, there are definite advantages in having a trust if you know what you are doing.

For a discretionary trust to be able to deduct a previous year loss it must pass four statutory tests.

50% stake test
Pattern of Distributions Test
Control Test and
Income Injection Test

If it passes all…[Read more]

Even if you are single it is best to set up the structure to be as flexible as possible.

You may have the property for a long time and alot can happen in that time.

As previously suggested a corporate trustee is desirable to help in trying to keep your other assets protected.

As has been pointed out previously an insurance policy should help…[Read more]

Hi Alison and Ian,

I thought Ian did a pretty good job explaining the trust effect.

I would add a few comments.

As a general rule you don’t buy appreciating assets in a company. You miss out on the 50% capital gains tax exemption if you do.

The more common vehicle is a trust.

For limited liabilty purposes the trustee is often a…[Read more]

Hi,

There is an Australian Business Forum at http://www.businessadviser.com.au.

I run the site and you are most welcome to visit and join in the forum.

Regards,

Glenn Wallace
Chartered Accountant, Business Adviser and Registered Tax Agent
For your business, accounting, tax, investment, super, finance and internet needs.

Hi,

Penalty interest and mortgage discharge expenses are tax deductible to the extent that the mortgage is used to produce assessable income.

Section 25-30 of the Income Tax Assessment Act 1997 refers to the expenses of discharging a mortgage being tax deductible to the extent that you used the capital to produce assessable income.

You can read…[Read more]