Account Right plus includes Payroll, so Standard would be mor than enough. I'd look at something like Business Basics (I think that's whatthey still call it), which is much cheaper and would be easier to use.

Terryw wrote:
Not necessarily just the trustee. Its probably not a good idea to distribute to the trustee anyway because if the trust is sued the trustee will be liable.

Agree with Terry. I persaonlly think that the trustee company should act SOLELY as trustee, and not receive any distributions. I would incorporate a new company for receiving…[Read more]

luke86 wrote:
I have no experience in this, but common sense would suggest that as long as you were paying your spouse a reasonable hourly rate, and the hours allocated are in line with the amount of work required, than all would be fine.Cheers,Luke

It depends on the type of income. Businesses which come under the Personal Services Income rules…[Read more]

As you have lived in the property first, CGT will be calculated on the value of the property from the date it first earns income. This is why you need the valuation, as it becomes your 'cost' for CGT purposes. It would be in your interests to have a higher valuation, as the higher the cost, the lower your capital gain will be when the property is…[Read more]

Generally, if you are living together in a 'domestic relationship', then you are only entitled to one PPOR between the two of you. I don't think there is, off the top of my head, an amount of time living together that then qualifies you as a domestic relationship. If you had different PPOR's for the 12-18 months, your partners share of the new pla…[Read more]

I'm guessing you would have a bond? This would cover some of the rent that is owed to you. If you have landlord insurance, your policy may cover the rest.

Hi Matthew,First of all, you are not failing at all. To be 27 with three IP's is a great achievement. You are well ahead of 99% of your peers. First thing I would suggest is be patient. Even for the few who have amassed large holdings, it didn't happen overnight. We often see the end result, that this young person has amassed an amazing amount of…[Read more]

There wasn't a great deal, really. There was a tightening of the ability to distribute profits from discretionary trusts to minors, removal of the Entrepreneurs Tax Offset, thats about it.

I'm a bit late, but I agree with Jamie. There are a lot of non-financial reasons to own, and the peace of mind that ownership brings is priceless to me.The other thing I hear a lot is, 'I'll rent and invest the difference'. I'm not sure how many people ACTUALLY do this, but you need to have the discipline to put away the extra funds into another…[Read more]

scotts wrote:
Terryw, Thank you, I'm happy to hear that my general understanding of what a trust can do is correct.Is there anyway for the trust to retain the profits after selling the properties and reinvest without distributing to beneficiaries or paying 45% (or whatever the highest tax rate is)?

The only way you could do this is if the…[Read more]

Hi Jenny, I'm a CA, and the main difference to me is that the CA training was much harder than the CPA training. The CPA's have closed the gap in the last few years, but the CA training program is still favoured by the big accounting practices, and big organisations such as Telstra and the big banks. The two bodies have tried to merge three times.…[Read more]

larrytheinvestor wrote:
How does this work: The newer the property the better the depreciation benefits for tax minimisation benefits?

Capital Depreciation is 2.5% of the building cost, per year, over 40 years. Newer homes will have a) more years where you can claim depreciation and b) generally a higher building cost, so the depreciation…[Read more]

amyhunz wrote:
So a child who becomes an adult earning a high income, thereby becoming not very useful when it comes to minimising tax…I guess you just work the numbers and allocate them a small portion of the income…Thanks Dan

We tend to find that the adult aged kids are even more useful for distribution of income. Generally, they may h…[Read more]

No problem.Yes, the $3000 tax free is to children aged under 18. After that, they are taxed as an adult on all sources of income.Yes, the losses are treated the same regardless of whether a company or individual is the trustee.

Hi Amy,There is no right or wrong answer, and as you have pointed out, there are positives and negatives for using a trust or solely in individual names. Some thoughts re: your post:1) A trust can be set up for about $1200 – $1500, and annual costs could be anywhere from $500 upwards, depending on your record keeping skills and how many properties…[Read more]

fWord wrote:

Shape wrote:
Fword- i think you mean one of the advantage of a brand new property..dont know abt the +ve part

Well, I'm no accountant, so I'm getting out of my depth here. But consider the following simplified example on a rental property:Interest on loans (per annum): $20,000Total rental income (per annum): $18,000Shortfall…[Read more]

kong71286 wrote:
Housing Denial in Australia Feeds Off Same Myths We Heard in the UShttp://globaleconomicanalysis.blogspot.com/2011/04/housing-denial-in-australia-feeds-off.html

Here are a few differences, off the top of my head.1) The Australian economy is relatively strong, we have low unemployment, and a budget that will be in surplus…[Read more]

Hi Joe,I would advise that you speak to an accountant that has knowledge of SMSF rules and regulations. You will have to pay to see someone, but they won't try and flog you a house and land package or a new trust deed.

not_so_lucky wrote:
If person A and person B each own 50% of the property. Once the property is sold it is split into 3 between person A, B and C.Will person C have to pay tax on their share of the money they've received, even though their name was not on the title of the property?

No, the tax is payable by the owners of the property, which in…[Read more]

Is it your only property?If I read your question and somehow missed the final sentence, and it is your only property, you could argue that it was your PPOR for the time you were living there and any profits would be exempt from CGT due to the main residence exemption.It would also be free from income tax as you would not have been running a…[Read more]