[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 14, 2008 - 11:54 am

Hello Emu1208

None of that will be tax deductible if it is done before you start earning any income from the property i.e. before you first get a tenant. It will be seen as the cost of getting your IP and added to the cost base for CGT calculations if/when you sell.

Some things, even if they are done after you start earning income on the IP, are not immediately tax deductible but are depreciated over a period of years. The general rule is ….. it is only immediately deductible if it is a repair or clean up.
For example if you repair a fence then it is a deduction. If you replace a fence then it is depreciated over a number of years.

Here is a link to the ATO site. At the bottom of the page there is a link to get a booklet called Rental Properties 2007 which is a good place to find answers to your question.

http://www.ato.gov.au/corporate/content.asp?doc=/Content/00119856.htm

Hope this helps
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 13, 2008 - 3:15 pm

Hello

Asking about the 11 second solution is just another way of asking about CF+ properties.

Just in case you haven't stumbled onto this thread which someone kindly started to help new forum members.

https://www.propertyinvesting.com/forums/property-investing/help-needed/22508

Cheers
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 13, 2008 - 1:34 pm

Hello gocoastal

There is no CGT to pay on selling a PPOR if it has never been an IP. There is no time constraints on how long you have to live in a place for it to qualify as your PPOR. 

Ring your accountant and he/she should be able to confirm this for you.

Cheers
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 13, 2008 - 10:07 am

Hello James

I've always used Nelson Alexandra for properties in the inner north of Melbourne. I have been happy with their service and have never had any problems with any of my tenants….. or they with me  

http://www.nelsonalexander.com.au/

Hope this helps
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 13, 2008 - 8:50 am

Hello Scott

Have you asked the vendor how much the land tax is that they want reimbursed?
If you say that as a single holding the land tax should be nil ( i.e. land value under +/- $200K in Vic) then it  may be better to "give" them the land tax and concentrate on getting the price of the property reduce by an extra few thousand.
 
Give a little, get a lot?

Good luck
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 12, 2008 - 10:47 am

Sorry. Double post.

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 12, 2008 - 10:38 am

Hello Scott

Interesting questions and by the lack of answers it may be that most people on the forum, like myself, have never been asked for an adjustment on land tax. I guess that's not surprising on residential property as we are usually buying someones PPOR which, in Vic. at least, is exempt from land tax.

I guess your accountant and solicitor will be the best people to answer your questions but here are a couple of my thoughts.

I would imagine that the vendor is only entitled to an adjustment based on a single holding irrespective of how much they actually had to pay. If they are then entitled to a rebate for the rest then it is from the SRO and not you.

Having said that I have been searching the Vic. SRO data base to see how you can claim any land tax back if you sell a property. I haven't been able to find any information on this which either means I don't know how to search ( very likely) or it is not possible. 

I would be interested to hear what you learn in this area.

Sorry not to be able to help as I find you always very helpful and knowledgeable with your answers.

Cheers
Elka

  

[elkamMember@elkamJoin Date: 2006Post Count: 722]

February 11, 2008 - 10:30 am

Hello the-brothers

I'm sorry I can't help you with your question but I have some I would like to ask you, if you wouldn't mind.
I assume you have rung the council and asked them?

Why are you looking to change a commercial investment into a residential one. Commercial property gives better returns and is usually much less tiresome to hold once you have a tenant.

Are you having trouble renting the property out? Have you been to a good commercial REA for a chat/advice.  
Have you looked at upgrading the property or even changing its use to offices for example.

From your post I understand that you are looking at converting the wharehouse into 1 residence… as opposed to several "trendy wharehouse appartements" is that right?.

Would be very interested in your reasoning and even figures, if you were willing.

Cheers
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 27, 2008 - 11:38 am

Hello McNorman

Assuming you haven't bought another PPOR ?.

Cheers
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 26, 2008 - 2:04 pm

Hello Misty1

Yes there is.
Click on the name of the user you want to PM.
Click on view public profile and you will see there a facility to PM that user.
 
This will only be active if the user has elected to receive PMs. Actually I think this was set up as standard so it was more a case of "unticking" the box  in their user profile if they didn't want to receive PMs.

Hope this helps
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 24, 2008 - 10:04 am

Hello Daryl

As you have described the situation, if you were to sell you would be up for CGT on 4 years ( being the 10 years you have rented out minus the 6 that you are allowed before you lose your CGT free status.). 

Hope this helps
Elka
 

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 22, 2008 - 2:19 pm

I have never heard of Bunbury but had a look on the net. Looks like a lovely place for a visit.
Good luck and let us know how you go.

Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 22, 2008 - 1:24 pm

Sorry. It took me so long to type that our posts crossed.
However, even if your parents are the trustees making non existent (at the time) children sole beneficiaries is still incompetent. 

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 22, 2008 - 1:17 pm

Hello frisky

Have you been to another solicitor for advice about the deed? One who is well versed with trusts?.
If not I would strongly suggest that you do that at once. The situation will only get more complicated (and expensive) with time I would think. This is probably a good time to unravel the mess.  

Based on the size of the land I imagine that you are in a rural area with perhaps not too many solicitors to choose from.
If you mention your nearest major town or better yet, capital city, maybe there is someone on the forum who could recommend a good solicitor for this purpose.  

At the same time you can ask their advice about what remedy you have against the first solicitor. I am no expert in this area but I can't imagine what could cost $10K to change.

Making non existent children trustees and sole? beneficiaries sounds like the solicitor is totally incompetent and a letter from another solicitor to that effect plus a threat to lodge a complaint with the appropriate body may make the first solicitor more willing to foot the cost of the changes. My preference would be to have the second solicitor do the changes but if you agree to have the first one do it free of charge then at least get it checked by the second solicitor.

Do I understand you correctly and this land is where you have built your home on? It may be a good idea for you and your father to review the whole situation with the new solicitor or maybe a very competent accountant.

If this is the situation then it seems to me that your home may be unsellable in the future and also that the most valuable component of it…… the land … (at least 1 1/2 acres of it) is not CGT free…. which is a real pity. However if this is a farm that you are working the situation may be totally different. I know even less about this area. 

Hope this helps
Elka

 

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 21, 2008 - 2:26 pm

Hello fisky

Have you had your solicitor or accountant check the trust deed to make sure that you're right about this?

If it's a discretionary trust (also known as a family trust) it would be most unusual for it to be so narrow that it only allows your children (not yet born)  to be beneficiaries of it. A DT usually has specific beneficiaries and general beneficiaries which usually include all relationships you can think of. i.e. parents of, grandparents of, children of, adopted children of, in laws etc. etc. plus………… if it's any good…… companies and other trusts affiliated with any of these people.

I think you may find that you (and your husband) are beneficiaries too.

You need to get someone to explain the document to you as in the deed it also sets out what the trustee is allowed to do. e.g.  sell or buy assets, borrow or lend money to the beneficiaries and much more.

If so I would be researching if the land is worth building on or subdividing as at the moment I assume it is not earning any income?

Hope this helps
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 21, 2008 - 1:44 pm

Hello gocoastal

The 12 month rule you are referring to is for CGT relating to IP's not PPORs. Assuming that your current home has never been an IP for you there should be no CGT to pay.

However if you received the FHOG or reduced stamp duty on the purchase because it was your first PPOR then you may need to stay in for longer. This is state dependent I think.

FYI I believe that CGT is calculated from time of contract signing not settlement.

Best to give your accountant a quick ring before you sell.

Cheers
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 21, 2008 - 12:35 pm

Thank you Richard.

Bummer!!! But all is not yet lost. 

I have a sister in Oz who is also my beneficiary so there may be something I can do with her if it's possible to be a member of two SMSF's.

Hello Rebecca

Sorry. I did not mean to hijack your thread but thought that the answers would be useful to your situation too. 

 
Will keep thinking.

Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 21, 2008 - 11:42 am

Hello Richard

Do all trustees have to be beneficiaries or can you for example have your FA or accountant as a trustee or maybe a relative with POA.

You're a walking encyclopedia in areas of finance and investing Richard.

Thank you
Elka

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 21, 2008 - 11:07 am

Hello Richard

"Where a fund loses its complying status by either failing the Compliance test or by becoming a non resident it wil have its income, including contributions received and earnings within the funds taxed at 47% in the year it became non- complying"

I have heard that it is possible to get around this (i.e. if you are overseas) by having a resident trustee but that you have to be able to show that they have real control. Have you heard of this? What I don't know is whether this "other" trustee has to be a beneficiary of the SMSF too. Any information you have in this area would be very helpful. 

Does the 28 day rule every 2 years only apply if you have retained your Oz residency for tax purposes or is it also applicable if you are a true and long term non resident (but an Australian citizen)?

Thank you
Elka 

[elkamMember@elkamJoin Date: 2006Post Count: 722]

January 18, 2008 - 6:00 pm

Hello 9ball

Have you looked at this company which claims to offer a better exchange rate than the banks. There was a thread which also mentioned another company but I can't find it. Sorry.

I haven't used them myself so this is no recommendation.

http://www.ozforex.com.au/

Cheers
Elka