Forum Replies Created

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of jc1979jc1979
    Member
    @jc1979
    Join Date: 2007
    Post Count: 8
    October 8, 2008 - 9:34 pm

    Ok still a bit confused.

    Lets say I own an IP in Australia earning me rental income of $20,000 pa.
    Lets say my Interest payment is $30,000 pa
    Now lets say I earn GBP 15,000 during the Australian income tax year.  During this year I am regarded as a UK resident for taxation purposes.

    What would be the scenario?  Can I carry the full -$10,000 over to the next year?  Or do they take my UK income into account?  If they do take my UK income into account, does that mean I can claim back some of the tax paid in the UK?

    My accountant seems to think that because I have earnt GBP 15,000, it is regarded as 'exempt income', which gets taken into account for negative gearing.  Given GBP 15,000 is more than AUD $10,000, his thoughts is that I will not be able to carry over any rental losses into the next year.

    Profile photo of jc1979jc1979
    Member
    @jc1979
    Join Date: 2007
    Post Count: 8
    October 7, 2008 - 11:43 pm

    Well thats good news then.  Is there any references where it states that this is allowed?

    Profile photo of jc1979jc1979
    Member
    @jc1979
    Join Date: 2007
    Post Count: 8
    June 8, 2007 - 7:15 am
    YvetteF wrote:
    I admit I am a bit wet behind the ears when it comes to knowledge about properties and costings, but I have completed a subdivision on a residential block of land in South Coast of NSW. 
    So far my subdivision (which had existing council approval when purchased) has cost about 60K, I understand the approval can costs up to 30k and depending on the requirements (such as access road, sewer, electricity provisions) you might be up for a lot more than you think, not to mention the 15K  council fees that my council require to be paid before going to lands and titles council.
    Now that I have block on market I am finding that because it is a battleaxe block, some people are turned off it.  Make sure you consider that when you estimate a final value.

    Theres money to be made but just watch out for the cost that you dont get told about. 

    Alternatively get the subdivision approval and sell it off as a potential subdivision!

    Yep we factored all those things in when we built the units.  Seperate sewerage systems, water metres, cross overs, driveways etc.  So all those were absorbed in the building cost. 

    The cost I described above only accounts for paperwork costs.

    Profile photo of jc1979jc1979
    Member
    @jc1979
    Join Date: 2007
    Post Count: 8
    June 7, 2007 - 1:25 pm

    We purchased an investment property in the eastern suburbs of Melbourne….knocked it down and build 2 units.  Bank valued the two properties together at $900k.We are now in the process of subdividing it.  Cost so far is about $5k.  Just getting the final papers done by the solicitor so unless he slaps us with a ridiculous bill then I think it will end up to be less than $10k.Banker rang me the other day and kinda suggested that they will now be valued at $500k each.  But wouldn't give me a definate valuation yet.  So yeh….definately worth doing if the land in the area is scarce.

    Profile photo of jc1979jc1979
    Member
    @jc1979
    Join Date: 2007
    Post Count: 8
    June 7, 2007 - 1:17 pm

    What state are you in?  I'm in VIC and have been told I cannot claim purchasing costs until the day I sell

    If you find out otherwise please let us know.

    Profile photo of jc1979jc1979
    Member
    @jc1979
    Join Date: 2007
    Post Count: 8
    June 7, 2007 - 1:14 pm

    If you are negatively gearing then it is better to put it in the name of the highest income earner, which sounds like your hubby.
    He has to pay more tax than you do, so negative gearing will work better for him.

    Ring another accountant to confirm

Viewing 6 posts - 1 through 6 (of 6 total)