Hi Emma,It's calculated on taxable income + reportable fringe benefits + reportable super contributions + investment losses.

Quote:
I have a family trusts which purchased an IP some time ago.  This IP has some equity after refinance. I want this equity (borrowed $$  loan from bank) to distribute $50k to myself this financial year so that when I sell my subdivided lot next year I can claim that $50k distributed already.  Assuming that I can sell the vacant lot for $2…[Read more]

I'm a bit late, but….

Pauk wrote:
I am lobbying for: 1. CGT on the PPOR at 20% if sold under 10 years. (exemptions for legit reason to move. ie work family health etc)

Not a bad idea, but would never fly politically. And why give exemptions? As soon as you do that, you open the system up to all sorts of rorting. It has to be either all or…[Read more]

If you are planning to continue renting, and you are repairing the damage (as opposed to improving the property) then you can claim these costs as expenses.

elisey wrote:
any recommendation for a great accountant really understand property and geuniely wants assist investors profolio and money position.Taylor

Where are you located Taylor?

Hi Richard,Agree with what you're saying, and the client in your example is entitled to ask, "If the strategy is so good, why aren't you doing it'. With tax advice, I think a good accountant should know the possible deductions regardless of whether they are in investor or not. However with other advice that an accountant may be asked, it does help…[Read more]

fredo_4305 wrote:
Hi all I am in the processing of conducting a subdivision. What is the ruling on GST and new residential dwellings? Do you need to pay GST on the sale of the property or is this only the case if the sale of the property is your main source of income.

Generally you would have to remit 1/11th of GST on the sale, or 1/11th of…[Read more]

Catalyst wrote:
20). My accountant needs to be property savvy. He/she needs to own property (a LOT) and know all the deductions I'm entitled to and how to get them.

It's interesting, I've been seeing a bit of this lately. I'd argue a good accountant should know the deductions available whether they own property or not. Neil Armstrong didn't…[Read more]

I hope they cut by 25 bp, but I think you might be right, Steve.

In relation to the tax benefits, travel to and from work is generally classified as private, and therefore not deductible. Do you have a home office, or do you have to transport tools / work equipment etc from home to work?If you are in the 30% bracket, it probably wouldn't be worth it, uinless you are doing a large percentage of work kilometres.

As Terry touched on, the simple answer is that the capital loss will be trapped in the unit trust, as the unit trust was the owner of the properties. If the trust is to be vested after the sale of the properties, this capital loss will disappear. If the unit trust continues operating, it has no assets, which could cause legal problems. (ie – what…[Read more]

itsandrew wrote:
Just wondering if reportable fringe benefits are included when calculating whether or not I am substantially self employed?

Do you mean for the deductibility of personal superannuation contributions? If it is for super deductions, your 'employment income' includes salary, plus Reportable Fring Benefits, plus Reportable Super…[Read more]

property1234 wrote:
I have heard that this 6 year period is renewed if you move back in. Is this correct and how long do you have to re-occupy the residence for?

Yes, the six year clock is re-set if you move back in.There is no set time that you have to move back for, but you have to be able to PROVE that you moved back in. You would need to…[Read more]

I personally like Hindmarsh Island, but see it more as a holidau home / short term rental area, rather than buy to rent. It certainly looks better now than it did a few years ago, seeing as there is more water in the Murray. There also seems to be people moving into the area. I'd love to buy a holiday home / short term rental on Hindmarsh…[Read more]

You might need to check the document you have signed with the current property manager as a first step, to see if there is a notice period, or whether you have signed up with the current PM for a specific length of time.

Scott No Mates wrote:
I am aware of one person who has a similar property to one of mine but is a corporate owner registered for gst, he can claim input credits but we must rent out at the same price. So we are treated differently for tax purposes. You may need a 3rd opinion.

Residential rent is input taxed, which means that no input tax…[Read more]

Yes, you can claim the interest on both costs.You can claim the expenses as long as you have the LOC, and the IP. There is no set date that they would have to be repaid by. Is the rent going into the LOC, or are you making any interest / principal payments? The ATO may have an issue if you are not making any payments on the IP, and capitalising interest.

Terryw wrote:
hi DanThanks for that.There are a few groups out there promoting such a 'scheme' and I guess it is getting too popular now.

I think you're right, once the promoters get either too brazen or too large in number, then the ATO looks to put a halt to the schemes.

There are significant penalties for breaking the rules, so a knowledge of the major rules would be beneficial. Time committments would depend on how many different investments you have in the fund, how many transactiosn you are performing and the work involved. If you areinvesting in Australian blue chip shares, and not buying and selling…[Read more]

confused84 wrote:
I am looking at a company (trustee) for a family trust. The company/trust made a loss for the last 2 financial years.However, the balance sheet indicates there are drawings taken out of the business by the 2 individual beneficiaries.Could someone assist me in understanding this transaction and the tax implications…[Read more]