Determining whether something is on revenue account vs capital account is a complex area which you will need to discuss with your accountant.

You will need to determine whether it is a mere realisation of a capital asset or something more. Cases to consider include Scottish Australian Mining Co Ltd v. Federal Commissioner of Taxation , FC of T…[Read more]

It concerns me that the representatives from the firm do not seem willing to discuss the details of the trust and how it works. I have no personal experience with this “new” type of trust but if a client should always be informed of the advantages and disadvantages of any structure. It is a clien’t right and a professionals duty to explain how it…[Read more]

Cata,

You like to “but and hold”. Sounds like some sort of kinky sexual fetish to me.

Terry,

Our dentist friend told me you were currently cruising around the Asian countries. Last time I heard you were in Japan. Business or pleasure ?

Rikky,

That’s a good point. It’s easy to look at yourself and forget that their are others who have low self esteem, weak characters, etc and are unable to bargain for themselves. In that respect unions do have a role for the weaker person.

If you are concerned about protecting your assets in the case of separation or divorce then consider a binding financial agreement.

However I urge caution. The last 2 times I mentioned binding financial agreements to my partner(s) at the time the relationship started to go sour. They thought it was extremely unromantic and I was admitting…[Read more]

I haven’t read through all the proposed industrial relations legislation but have never worked in a unionised environment and for the past 5 years have worked public holidays, very rarely taken annual leave, never availed myself of sick leave or enjoyed any of the benefits of an employed individual. Why. Because i am a business owner and was…[Read more]

Richard,

That is assuming the purchaser agrees to the margin scheme being used. Assuming that the properties are going to be used for residential purposes then the purchaser is probably not seeking an input tax credit and therefore won’t be concerned whether the margin scheme is applied or not.

If however the terraces are used for commercial…[Read more]

Wealth,

You can certainly transfer property in-specie to a trust but the market value substitution rules will come into play.

If the property is your main residence, and has always been your main residence, then CGT is not an issue as you will obtain the main residence exemption.

Depending on the State you live in will determine whether stamp…[Read more]

I would agree with Terry. About $150K is a minimum for establishing a SMSF.

We have closed a number of SMSF for clients with under $50K as the establishment costs (around $1,200-$1,500) ongoing accounting costs (around $1,200 – $1,500 per annum), annual audit costs (around $500 – $600) for the majority of people is more than the ongoing fees you…[Read more]

She is correct. The land titles office only records the trustee against the title. It is not XYZ ATD The ABC Trust it is merely XYZ. If it is an individual as trustee then the individual will be on the title if a company then the company.

What I find ridiculous about the whole Land Cove apartment collapse has been the media’s concern over a bird. Ray Martin was on A Current Affair the other evening questioning the Assistant Commissioner of Police as to whether the robot could save tweety. As quoted in the Sydney Morning Herald “But it was too dangerous for anyone to enter the…[Read more]

An individual is said to be dealing at arm’s length with someone if each party acts independently and neither party exercises influence or control over the other in connection with the transaction. The law looks at not only the relationship between the parties but also the quality of the bargaining between them (Granby Pty Ltd v Federal…[Read more]

Had a look at the site. If you were using a structure for negative gearing then the costs would be

Company $1,075
HDT $ 550

So this comes to $1,625. Then in NSW on top of that you have will $202.00 for stamping of the deed.

So for doing everything online it will cost $1,827. This is without any advice regarding the appropriate…[Read more]

Be careful with streaming to other beneficiaries were an individual has been issued with special income units.

If the special income units were issued to fund the acquisition of property and none have been redeemed you could loose interest deductibility if you stream to another person without special income units. Refer Munro V FCT and Part IVA…[Read more]

http://www.austlii.edu.au/cgi-bin/disp.pl/au/cases/cth/high%5fct/1999/7.html?query=%5e+%20%28%28steele%29+and+%28on%29%29#disp1

You can also refer them to Taxation Ruling 2004/4

http://ww5.cch.com.au/Tax+Rulings/tr2004-4.doc

Interest incurred prior to assessable income

1. It follows from Steele that interest incurred in a period prior to the…[Read more]

It is deductible. Refer the accountant to Steele’s case.

Yes where a company can execute a deed without using a common seal if where the company has a sole director who is also its sole company secretary, that person alone signs it. Refer to Corporations Act.

You will also be signing the loan agreement as lender as well in your individual capacity.

Cata,

Thanks for that, I was obviously reading it incorrectly.

As with any disagreement with regards to a professional opinion I always request the objecting accountant to provide their reasons in writing with reference to relevant case law, ATO rulings, etc.

I would suggest this approach. It makes things clear and in the event of an audit if one accountant is incorrect in their interpretation of the law…[Read more]