Mister Phes (if that is your real name), I didn't write the bit about the ATO. All I commented on was your defence of Kevin Young changing his name. It gave me a good laugh. The fact you mention David DeAngelo as a defence of the practice, as well as Donald Trump, amuses me even more.Thanks for brightening up my day.

Mister Phes wrote:
He changed his surname to "Young" because it's a more marketable name than Sempe, but I suppose people without a marketing background wouldn't understand this.  Nonetheless, both Kevin's sons retain the name Sempe and its not it something they're trying to cover up.

This absolutely cracked me up. I'm actually thinking of…[Read more]

If it costs you less than $300, you can deduct the full 100% as maintenance.

If you are subdividing to build and sell for the purpose of making a profit, it could be treated as ordinary income and no CGT discount would apply. If you are building to rent, the building would generally have the same CGT date as the land, following the rule that what is attached to the land is part of the land.

It would be deductible as maintenance.

npg wrote:
Do you have a life partner? you can form a company (as my wife and I have) and the profit of 20,000 (40,000 – 50% break) can be divided amongst individuals who form the company and the company itself and therefore each portion of the profit is subject to a lower tax bracket. Probably dosen't make sense so make sure you speak to an…[Read more]

Hi Walks and Nic,I'm a Chartered Accountant based in Norwood, and our firm has many clients involved in the property industry, from single rental properties to large CBD developments.  If you would like some more details, send me a PM.Rgds,Daniel

Transfering from your name to a family trust may trigger stamp duty. Talk to your accountant about setting up a family trust, and the costs will be somewhere from $250 to $500, depending on their margins!

Hi W4L,I'd make two comments. One, if the Rudd govt didn't spend as they did, Australia would have gone into recession, and unemployment would have been much higher. The test will come when it is time to STOP spending. Hopefully they can see the signs and rein in the spending, or we will have higher inflation, interest rates etc.Secondly, in the…[Read more]

quickchick wrote:
I recommend reading Steve's revised copy of 0-130 pproperties in 130 years, as it will be a great help.  quickchick

Wow, I didn't realise it took Steve THAT long to buy his properties!!

quickchick wrote:
From my understanding (which is not complete!), the only way NOT to cross-collateralise, as you say, is to withdraw equity and make your first IP loan independent.This could mean that eg you leave 20% equity in PPOR loan and take 20% deposit for IP out of home loan. Hang on a minute, that is not a great position.Costs from…[Read more]

Hi Trent,You would have to pay Capital Gains tax when you sell, for the percentage of time the unit was used as an investment. There would be no CGT payable if it was solely your residence. One way to avoid CGT would be to move into your unit, move out 6 months later and rent it out for up to 6 years, then move back in. No CGT would be payable in…[Read more]

Hi Cana,You said your husband pays zero tax on his salary after completing the PAYG variation form. Is this correct? If he is paying no tax, depending on his income, he may still pay nothing even with the $5 per week increase in rent. If the extra rent forced him into paying tax, it would only be at 15% marginal rate anyway. at most, it would…[Read more]

Also, on the contract of sale, you must notify the purchaser that you have chosen to apply the margin schem, otherwise you could be up for the full 1/11th of the sale price.

Hi Joel,You are right in that normally residential property does not attract GST, but if you sell new residential property, and you doing this as a business, you are required to pay GST. Basically, if you are in the business of building residential property, and your turnover is more than $75,000, you are required to register for GST.The GST can b…[Read more]

The deed usually names Primary Beneficiary/s, then has following beneficiaries, such as,,the spouse of the primary beneficiary,any children of the primary beneficiary, etc.

Yes, you can have whoever you like as a beneficiary. It's best when setting up the trust to include all and any posible beneficiaries, such as children, grandchildren etc, as well as companies of which you are a director etc. It is at the trustee's discretion as to who receives a distribution from the trust for any particular year.

I think you would have an issue with the In-House Asset rules.

Hi Kacha,In regards to the income distribution of the trust, your accountant is correct. The majority of the income should be distributed to your hubby as he is the sole income earner of the trust. These rules are the Personal Servises Income rules, and look to limit the profit splitting from trusts. It looks like what your accountant has done is…[Read more]

WJ Hooker wrote:
Lets have a monthly update.Dan42 – Steve Keen predicted 20% drop not 40%. But even he was surprised by the large drop in interest rates, to save the house drops. But, lets see how we go from here, I know lots predict massive price rises over next few years ( if it happens then I will be happy and make lots of money ). I posted…[Read more]