Forum Replies Created
How long ahve you lived in the rented house? You will be up for a portion of the advertising, leasing costs, and rent until a new tenant is found. And it would usually come out of the bond, assuming the bond covers it.
I'm with Terry, that's no way to do business. That email cost Manoj business, not gain him new business.
If you are a full fee paying student, you MAY be able to deduct your fees, but only if it relates to your current income.
Got there in the end!
There would be no GST issues, as it is a residential house. There would be stamp duty consequences on transferring fromn yourself to a trust. There MAY be capital gains consequences, as the PPOR was previously held in a trust. I'd need more details to see what the CGT would be.
I'd suggest leaving your PPOR in your own name, and set up a Discretionary Family Trust for your investment properties.
If your property is negatively geared, and you have no other income to offset this against, the losses from your RP accumulate, so they can be deducted in future years.
For depreciation, I would advise to pay the money (it's tax deductible) and get a Quantity Surveyor's report.
Yan,
If you signed the offer 'subject to finance' you should not lose your deposit.
A capital loss can only be offset against capital gains, it can't be offset against ordinary income.
It looks as though you are renting at the moment? Is this correct?
If so, you wouldn't pay any CGT if you sold at the moment, as your house would still qualify under the 6 year rule. Basically, you can be away from your main residence for up to 6 years and it is still exempt from CGT, as long as you do not have another PPOR.
Firstly, you are exactly right to want a separate DT for business and property holdings.
There seems to be two different points here.
1) A company acting as trustee CAN be a beneficiary of a trust, but it SHOULD not. It's sole objective should be to act as the trustee. Also, if Company trustee of DT01 is a beneficiary of DT 02, a 'trustee beneficiary' statement needs to be lodged with the ATO.
2) The TRUST can act as a beneficiary of another trust, to use up the tax losses. To do this, however, the trusts will need to lodge Family Trust elections, and interposed entity elections with the ATO. These elections basically limit who the trust can distribute to, once it has income to distribute.
a) ASIC requires that the minute book of the company be available to the public, at its 'registered office'. A lot of companies have their registered office as their accountants office, so ASIC correspondence goes straight to the accountant. Your 'trading' address would be your home or business address.
b) You don't need to register the company for GST, as it isn't trading. The trust may need to be registered.
c) No. If the trust needs to be registered, then it would submit quarterly BAS.
d) Depends on what you are doing.
e) A company acting solely as trustee would not need to do a tax return. All the information is in the trust.
f) Not that I'm aware.
g) I would have one director.
i) There is no requirement to have a separate company phone line.WJ,
There is no requirement to move back in to the house in this situation.
In your situation, you will qualify for the 100% main residence exemption, if it is sold in 2 years as you plan, because:
– Your house was your main residence before you moved out.
– You are not buying another main residence (you are moving into your daughter's house)
– You are planning on selling in less than six years.Dan
What state are you in?
Hi Skippy,
The test for deductibility of interest is, 'What were the funds used for?'
So, in your situation, the interest would not automatically be deductible, just because the security is an IP. If the funds were used as a depoisit on a new IP, then yes, the interest would be deductible. If it was for a new car or a deposit on a new PPoR, then no, the interest would not be deductible.
Dan
hbbehrendorff wrote:SHales wrote:….. they should do so improving infrastructure – particularly that which makes the country globally competitive and economically strong.Can you or anyone else please explain to me how spending money we currently do not have on Infrastructure improves our economy ? Because In my opinion it doesnt, You can have the biggest, best roads in the world… How will that improve our productivity and turn our trade deficit into a trade surplus ? It wont !
Its the same principle as me telling you to go out and remodel your kitchen after you loose your job, Put in a brand you drive way to your house or build a swimming pool in the back yard… How does running out and spending money you don't have going to put you in better economic shape ?
Spending on infrastructure keeps people employed, therefore paying taxes, spending money on discretionary items etc. It's not rocket science.
It is not the same principle as remodelling your kitchen after you LOSE your job. The better analogy is a business borrowing money to do some advertising. The projected increase in income from the new business will pay for the advertising.
No, as you will still qualify for the main residence exemption, for up to 6 years.
Yes, the 6 year rule applies in this situation. Basically, you can only have one property that qualifies for CGT exemption at a time. As you will be renting, not buying another property, you would qualify for CGT exemption.
Here is a link to the taxpayer alert relating to hybrid trusts. If you currently have a hybrid trust arrangement, you can apply to the ATO for a private ruling.
The Tax Office considers that the arrangement outlined above may give rise to taxation issues that include: whether the general anti-avoidance provisions in Part IVA of the ITAA 1936 may apply to the arrangement, on the basis that its dominant purpose is to enable the taxpayer to obtain a tax benefit.
It's hard to argue with that.You're assumptions are pretty much correct, but remember to deduct the selling fees from the amount you received for your share of the property. YOu would also need to justify your valuation of the property, at the time it ceased to be your PPOR.
Also, you say that family were living in the property. Were you receiving any rent? If not, you can add your share of interest, council rates, water rates etc into the cost base as well, from the period when it was not your PPOR.
