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

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

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

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

Hello McNorman

Assuming you haven't bought another PPOR ?.

Cheers
Elka

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
 

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. 

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

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

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