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Bear in mind purchase costs such as stamp duty, legal fees and selling costs such as agent's fees form part of your cost base.
The date of the contract is what is important for calculating whether the 50% discount for CT applies.
If you're building a house to sell, then CGT is irrelevant as the profit will be part of your normal income. Also you will need to factor in GST.
As Scott says – look at the lease. Don't generalise on commercial leases particularly of small shops beacause you have any of the following:
a. tenant pays all outgoings
b. landlord pays all outgoings
c. tenant pays some outgoings
d. tenant pays a %age of the increase in outgoings from a base dateYour capital growth depends on your ability to increase rents and to relet if a shop falls vacant.
I wouldn't be interested at 7.33%
Bear in mind your bank is likely tro want a P & I loan and the term will be short eg 10 years. So this will put pressure on your cashflow
In NSW the Vendor could issue a 30 day notice if the sale is with vacant possession. Did you buy with Vacant possession or subject to existing tenancies
Can you look up something eg API median prices and then search on realestate.com.au
Confirmed. Sale is a CGT event and does not fall within an exemption. Cost base can be increased by rates, insurance, interest, maintenance.
First place to start is making sure you are maximising any work-related deductions or deductible self-education expenses. Better still, if you are paying them can you negotiate for your employer to pay them.
Second, possibly julia Hartman's book on tax and property investment. Note that tax laws change constantly.
Third remember there are state taxes such as land tax and stamp duty. While these can't be avoided their impact can be minimised particularly land tax by buying in different states or names.
Fourth – ask questions. With tax it is best to ask them before you enter into transactions.
No. You are looking at cashflow which is different to income and expenses from a taxation perspective. Deposits are not deductible but are capital expenditure or if you are turning over houses will be part of the cost of trading stock.
WA practice may be different. In NSW they should be completely out before settlement otherwise they are not in a position to give vacant possession and are unable to fulfil the contract. As conveyancing is a state rather than commonwealth matter and each state has its own rules, if someone is after assistance it will be much more meaningful for them if they specify the state the property is in
It would be nice to have a crystal ball. Variable interest rates have risen between 0.75 and 0.95 depending on who you are with. On my discount there is still a gap of about 1.5% between current variable and 3 year fixed interest rates.
So on $300,000 the difference for 3 years between current variable and current fixed is $13,500 over 3 years.
So eg to break even by fixing you would be anticipating variable interest would increase 1% early next year, 1% at the beginning of year 2 and a further 1% at the beginning of Year 3. The slower the increases next year the more interest rtaes would have to increase in later years to come out in front by fixing.
On the other hand sleep at night factor is a big thing too. Current fixed are close to what you have been paying.
I fixed $350 a few months ago at 6.35 and took a punt on $130 variable on the basis if variable went up 3% I'd have difficulty, I was prepared to pay potentially $3,000 odd per annum for peace of mind.
property1234 rather than ask lay people where if you are alleged to make a mistake in ethics you would have to spend time energy and emotion defending would it not be better to ask your professional association for a ruling and also whether you would be obliged to disclose any additional information to the vendor.
As a trustee you have a right to be indemnified for debts you incur acting in that capacity from the trust property. The issue you have is that you are the trustee so any borrowings by the trust are borrowings by you with a right of indemnification from the trust property, but the assets of the trust don't belong to you but are held by you in trust as per the trust deed.
Good news if your intention is to buy build and sell you will not be subject to capital Gains Tax, instead you will be a developer and pay tax on all your profits
Talk to a solicitor. If the wording is just "subject to valuation" this may be uncertain. The solicitor will need to see the whole contract.
I'm sure that you are not expecting anyone to recommend that you break the law
What is the exact wording of the caluses?
if you enter a contract for the vacnat part before 12 months have elapsed you will be paying CGT and not be eligible for the 50% discount
look at the future of the wine industry
http://www.smh.com.au/business/de-bortolis-new-red-leaves-a-sour-taste-20091123-iyey.html
The health/water in the Murray will be the issue.
Our system of taxation is self assessment which means if you get it wrong there are penalties. If you're selling new houses (which includes houses less than 5 years old that haven't been sold before) you are building – your turnover would require you to be registered for GST. The ATO gets land transfer information etc etc. What if you're telling someone this is what you do but you only pay capital gains tax, are you sure they or someone else won't let the ATO know.
If you're going to develop then you should do that in a different entity so that your actions as a developer don't opvershadow your long term investment properties.
If you have a SMSF you might be able to gear a property through that.
If you are wanting to take money out of the super fund for a property you are buying outside the SMSF as a general rule no. There may be exceptions based on whether you are entitled to withdraw superannuation eg your age, work status.
