You can rent it out for up to 6 years as long as you don't buy another PPOR interstate. The expenses can be deducted from when the property is available to rent. Depreciation and capital allowance deductions would, in my opinion, be deductible to you. CGT law would require you to add back any capital allowance claimed during the ownership period,…[Read more]

Daniel Cameron wrote:
Hi,    Thanks for comments. Can i sort out the tax i pay next financial year? I was under the impression super did not need to be paid for casuals?

Do you mean next July? I wouldn't advise that. The employer is required to withhold the amount of tax from their employees wages, so you would need to register and be re…[Read more]

Hi Daniel,You will need to register for PAYG Withholding with the tax office, so that you can report and remit the amount of tax form your employee's wages.This is usually done on the quarterly BAS. Are you currently registered for GST? If so, it will just be an extra section to fill out on your quarterly BAS. If not, you will get a whole new form…[Read more]

Hi Mat,Unfortunately, regardless of when you drawdown the equity in your PPOR, you won't be able to claim this as a deduction when it converts to an IP.The basic rule is that the purpose of the funds used determines deductibility of the interest. So if you drawdown to purchase a new PPOR, the interest on the drawdown would not be deductible.Which…[Read more]

Terryw wrote:

Terryw wrote:
Dan,What about s118.192?http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.192.html(and what happened to s118.196, repealed by the look of it)

Sorry, I had this around the wrong way – This section applies when converting a PPOR to an investment. Then you will need a valuation.

Sorry for the slow…[Read more]

theplatypus wrote:
I'm moving into my investment property to live in the next couple of weeks and was told I should get it valued so that I only pay capital gains tax on the value of the property now than what the value would be years later if I sold it. I asked my bank what it would cost for them to value it and they said approx. $150 which s…[Read more]

gavsam wrote:
Hi there,having got a fuller version of how this works from my accountant guru, here's what i found:Discretionary Family Trustto create u need:   The legal owner (in name only) – trustee                  The assets (business or other assets, such as a home) – trust fund                  The beneficiaries              …[Read more]

AM2778 wrote:
From my knowledge, Legal Expenses on Investment Property are not Tax Deductible.Needs to be verified from a Tax Accountant.AM2778

Capital costs associated with purchase are not deductible, but the interest paid to acquire the asset is deductible.

mortgagedetective wrote:
be shocked if you are making a reference to them. Please clarify.Also, what happened to Taylored Financial Solutions? I thought the updated website looked great. Are you winding that business up?

Check the date on Richard's post. It was from 5 years ago.

If the trust owes you money (ie – a credit balance in the trust accounts) then you don't have a problem. It's only if you have a corporate beneficiary and the company has a UPE in the accounts of the trust. If you give a distribution to the company, this will have to be covered by a loan agreement, and interest paid to the company under the Div7A…[Read more]

Yes, Interest on Loan B is deductible.2.5% relates to the construction costs. A QS will be able to work this out for you.

OK1) Interest on Loan B can be claimed IF it is used for deposit, legals etc. 2) Any holding expenses for the property can be claimed. (Council Rates, LAnd Tax, Water Rates, Insurance etc). Interest on Loan C is deductible as it was used to purchase the property.3) If the property was built in 1990, 20 years of depreciation has already been…[Read more]

From a tax perspective, it looks ok. You would be able to claim interest and other expenses on a property rented to your wife, IF your wife is paying market rent.

Firstly, there is no issue renting a property to your spouse. Malcolm Turnbull rents his wife's appartment in Canberra.The problem I see is that you will be living in the property that you are saying is being rented to your spouse. You can't rent to yourself, and as this will be your home as well, this may cause an issue. Is the move to NSW a…[Read more]

Hi Jai,Are you claiming depreciation on the property? If not, getting a depreciation report can increase the expenses for your rental property. Of course, this depends on how old the property is and the value of fixtures and fittings etc.Unfortunately, a lot of the loop holes have been closed. For a wage earner, there isn't a lot that can claimed…[Read more]

DWolfe wrote:
Hi,It would have been pretty likely that people put off listing properties for sale during the final weeks of footy and Grand final week. People were actually pulling their auctions after the Grand final had to be played again. Melbourne…..D

The numbers are amazing. Auctions Grand Final day – 65Auctions Grand Final replay day -…[Read more]

jolmur wrote:
Hi I was living in a property that was unencumbered then my parents required care so we bought a place together and the property I was is was going to be sold to pay for new one. It didnt sell so we rented it out and I thought that it would be an investment (which it is) but because there wasnt a mortgage it became positive geared…[Read more]

Which state, Nick?

Kingandy wrote:
.. " Mr Pratt got into a shipload of trouble for far less than that.

Unless the refunds not returned totals over $500 million, then they haven't made it to Dick Pratt territory.

Hi Eamon,Generally, you can loan money to the trust, and the trust will have to pay you interest. So, in your personal tax return, you will have an interest deduction for themoney borrowed, and interest income from the trust. If you loan money to the trust and don't charge interest, you can't claim the interest, as there is no nexus between the…[Read more]