Forum Replies Created
I’m definitely interested. Is the Yokine Hall meeting on 1/10 already fixed or would you like us to show our hands first?
Cheers,
DonThanks a lot Jolie, that’s exactly what we need. We are building two identical houses with the same builder so it shouldn’t be too difficult to prove that they have similar value, taking into account potential slightly different subdivided block size.
It’d be perfect if you were in Perth… If you don’t mind I ask, do you know any good PI-savvy solicitors in Perth?
Cheers,
DonThanks lifeX. I think I got your point about doing it as early as possible to minimise the SD payable on transfer. The problem is that as we are subdiving the land into survey strata, council will not issue titles until the houses are completed. So we can’t really split right now.
Another issue is CGT because I believe any transfer is a CGT event so it might be better to transfer after 12 months.
There is so much I need to learn… While we are on this subject, will anyone recommend a good accountant who knows PI well in Perth?
Cheers,
DonOriginally posted by elkam:
Can you please explain the statement above. How can CGT be as low as 10%.Just for fun, I can think of one scenario – if one has no other income and makes a capital gain of $100k, then with 50% CGT discount, his total income is $50k, on which the tax would be $10,350. So the effective tax rate would be 10.35%.
If the capital gain is less, the effective tax rate would be even lower.
Cheers,
DonOriginally posted by Terryw:
eg. If someone were to use a LOC on an investment, and then have their wage deposited in to the LOC account, the ATO would class this as a repayment. If they took money out to buy food, then the interest on this would not be claimable as it would be new borrowings for domestic purposes. Over time this could lead to their deductible portion of the LOC rapdily reduce, while the non-deductible portion increases.Thanks Terry. So if I understand correctly, the problem occurs when one use one LOC account for mixed investment and personal use. On the other hand, if all transactions are related to investment, it would not cause such problems and therefore it’s clearer for tax purpose.
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In my case, the LOC is on my own house. I draw down the account to, say, pay deposit and other fees to my initial purchase, and deposit the unused amount such as overpayment of council rate allowance. I also intend to deposit GST refund into the same account. I was told (this is my first development project so I’m learning while I go) this is ok. Will those deposits be seen as repayment, i.e., regardless where the source of the deposit is?
<br><br>Originally posted by Terryw:However, if a offset account was used, interest saved would be the same, but since its a separate account to the loan, there would be no new borrowings when money is withdrawn, and therefore, no problems in claiming interest. Certainly less messy at tax time.So one is effectively claiming the LOSS of interest earned, rather than the interest charged to the borrowing? Is this just a difference in terminology, but is in fact treated the same for tax purpose?
Thanks,
DonThere can be serious tax implications with using a LOC. Offset is much simplerHi Terry,
Can you elaborate on the potential tax implications of using a LOC? I’m using a LOC for my development project, so I’m very interested to any potential problems with this approach.
Thanks,
Donald Xie
