Hi Kylie,If you are talking about the inspections done before buying, then theses are capital costs and not deductible against income. They are added to the cost ofthe property when you sell.

Not for investment properties, I'm afraid. It's only for 'active assets', such as goodwill in a business. It's basically an exemption if you have had an active asset for 15 years, and you are retiring, and you satisfy the small business CGT exemptions. Investment properties do not qualify as the asset is not considered an active asset in almost…[Read more]

Because your property was rented first, then you moved in, you would pay CGT on the 10/13ths of the capital gain. x 50%. For the 6 year rul exemption, you must have lived in the property first.

Hi Myra, Great first post…..Hope you stick around to tell us what courses we shouldn't do, but I won't hold my breath.

Generally you would go back and amend the previosu four years tax returns, rather than claiming all four years expenses in the current tax return. The claim depends on who owns the asset. If the divorce meant that one party took over the asset, then they get the deduction.

Steve Keen has no idea.

MrsC wrote:
Thanks. I think i will go down the accountant route.Following on from this, any views on whether the ITP's and H&R block people are any good for this? When i call other practicing accountants they bad mouth these organisations. But surely a lot of people still benefit well from their services…

I think it depends on who you see at…[Read more]

I'd say yes for two reasons. If you get it wrong and you under pay CGT, then the ATO can apply penalties and interest to the shortfall. (That's if they find out)On the other side, an accountant will work out the amount of the capital gaijn, and may find amounts that can be added to the cost base that you may hafve missed, reducing the amount you…[Read more]

Get an accountant.

Intrigue wrote:
Owe okay thanks Terry,So perhaps the contract shows the value @ $138,000 and the deposit of $80k. Upon settlement I pay the balance.I pay stamp duty on the total value. This maintains my value and aids future CGT issues.Do I still need to declare this $80k as income – as I am not being paid it. Would I have to decalare it as a…[Read more]

Reginald wrote:
Hi,I just wonder do we have property capital gain tax deferral in Australia. It happens in USA. It means could we defer the capital gain tax if we take the profit from the last investment property to buy the next investment property? Regards,Reginald

No I'm sorry Reginald, this doesn't applyh in Australia to property. There is…[Read more]

Hi Theresa,I just sent you a PM. I'd be happy to answer any questions you have, or provide you with more details if you wish.Dan

Terryw wrote:
Stamp duty is $500+ in nsw, but may be nil in other states.

Wow, 500 bucks stamp duty! There is no stamp duty on trusts in SA.

Hi Theresa,If your rental property information is prepared by you on a spreadsheet, then $1300 seems high. Are you a salary earner, or are you self-employed?Generally, the better your information is, the less you will be charged, because it takes the accountant less time, and the accountant will sometimes charge a 'annoyance markup' if they have…[Read more]

crusty wrote:
Well what a disapointment that turned out to be badger. I thought maybe your were a clever investor. I guess you just  dont know what you dont know. May  be you better read some more books.  If you are as smart as you pretend you wouldnt be  paying CGT or selling costs , especially if you bought quality investment property in the…[Read more]

number 8 wrote:
Let me say, talking and making a difference in the life of Mum and Dad Australia is a joy. I love breaking down financial walls and restraints to show people how to save a dollar. But like I keep saying to my family and friends it is difficult to charge someone on a pension, or with two children and husband has left etc…[Read more]

kylieandronnie wrote:
Do i claim buying costs such as stamp duty, buyers agent fees, loan set up fees in my end of year tax?Or are these just claimable when you sell?

Stamp duty and buyers agent fees are added to the cost, and in effect claimed when you sell.Loan set up fees are claimable in your tax return, but over 5 full years. They are not…[Read more]

Hi Terry,From s40-65 and s40-75, I agree, it would be a taxable supply. But I think it would only be a taxable supply if you are registered, or required to be registered for GST. I think intention is relevant, in that it shows there was no business of development. The GST Act requires you to be registered if you are carrying on an enterprise in Au…[Read more]

I can't remember Gerry Harvey complaining when everyone was spending their 900 bucks in his stores buying Ipods and plasma tv's. My personal opinion, we need to take what Gerry Harvey says with several grains of salt. No matter how bad Labor are going (and it has been pretty ordinary the last year), they will never be as bad as a government led by…[Read more]

The exit fees from the bank are a cost of borrowing, so would be included in the rental expenses, as borrowing costs. I assume it was your PPOR from day one? If so, the cost base is $435,000 (per the valuation)The sales price is $428,000 less agents commission, conveyancer etc.