Apprentice,
Steele’s is the precident that expenses that are esentially revenue in nature are deductible before income is earned if the intention in buying the property is to produce revenue. Accordingly, travel expenses incurred after settlement are deductible.
Just to clarify other comments. ID2003/771 travel costs can never form part of a…[Read more]

Wake,

Steele’s case is the precident and it has been around for quiet a few years now without challange.

Julia Hartman
julia@bantac.com.au
Visit http://www.bantacs.com.au

Supa Freak,
Buy a property with the primary purpose to make a profit on resale CGT does not apply normal income tax does so no CGT discount.
Buy a property with the primary purpose of gain income from renting it out CGT applies on sale so if held for more than 12 months 50% discount (unless held by a Co.)
Trust or individual someone must pay tax…[Read more]

Heres the article on wraps you refer to Terry:

If the Vendor Finance arrangement has the following features the income stream received, once the wrap arrangement has begun, is considered to be principle and interest by the ATO. The income stream received before the wrap arrangement is entered into is considered rent. Reference…[Read more]

Excellent answers Terry & Great Pig

Im not buying into the overseas trust or co issues as it is a mine field of double tax treaties and each country’s restriction on foriegn ownership, not to mention our controlled foreign entity rules.
But I would like to point out that minors do not qualify for the $6,000 tax free on passive income. The best…[Read more]

housemouse,
It is from the time you bought the land unless the land is pre 85.

julia@bantacs.com.au

http://www.bantacs.com.au

If you can BAN TACS at least minimise it legally

rylu,
Registered for GST must remit 1/11th of the business income as GST to the ATO unless the supply is exempt or input taxed such as domestic rents. Bonus to beng registered for GST is when you buy, if you are charged GST you can get it back from the ATO, but when you sell you pay 1/11th of the selling price to the ATO.

Julia

Murph 33,
A positive cashflow property does not always result in a tax bill because it may not be positive for tax purposes. This can happen if you are able to claim building depreciation as a tax deduction. This is a tax return entry and does not effect your cash flow.

julia
http://www.bantacs.com.au

If you can’t BAN TACS at least minimise it legally

Desktop,
I onced looked into a similar investment in Brisbane but decided not to go ahead because the motel chain could force me to refurbish the unit every 7 years. At a cost of $25,000. Nevertheless I watched the progress over the years with interest. It turned out that the company offering the guaranteed return had no assets so the guarantee…[Read more]

Kay Henry,

Sorry on Queensland

Julia

How about a free seminar on rental properties. It is manly in relation to managing them and CGT consiquences. Further as I am a registered tax agent travel to listen to me is tax deductible anyway. The seminars start at 6.30pm at
Caboolture RSL Monday 27th Sept
Maroochydore RSL Tuesday 14th Sept
Please ring 07 54976777 so we know how many…[Read more]

Sorry I haven’t been on line for over a week. Good to see this topic is getting a lot of responses as it needs all the publicity it can get.

Bennido:
I think what Julia is saying is that for IP loans, having an offset account is better than LOC for tax simplification. You can move money in and out of the offset account without affecting the tax…[Read more]

wayne12,

Repairs and Maintenance, not improvements are deductible. For example if the house needed painting when you bought it then painting it would be an improvement or if the house did not have a garden hose then purchasing one would be an improvement, therefore not deductible. On the other hand if during the time of your ownership the hose…[Read more]

WAZ11,

TD58 no main residence CGT exemption.

julia@bantacs.com.au
http://www.bantacs.com.au

If you can’t BANT TACS at lease minimise it letally

MasterREL,
You will not be slugged 30% tax on your initial investment if you are considered a share trader. Sure the value of the shares will be brought into account as a credit to closing stock but the original purchase will be brought into account as a debit to purchases. Thus cancelling each other out.
The biggest problem with buying…[Read more]

ManicSquash,
Sorry, I know nothing of NZ laws but would like to point out that if the interest on the property exceeds the net of rent and other costs the difference is deductible in Aust. This has only been in for a few years before then it was quarantined.

julia@bantacs.com.au
http://www.bantacs.com.au

If you can’t BAN TACS at least minimise it legally

jasonamurphy,

Confirmed today with peers that definately no main residence exemption for the sale of vacant land no matter how long you had a house on it. So CGT applies to the whole transaction but if you live on the land in a caravan and sell the caravan with the land you can rectify the situation. Watch the Sunday Mail for me having a winge…[Read more]

Benindo,
The capital works depreciation does not qualify for the $300 write off so it is 2.5% over 40 years.

julia@bantacs.com.au
http://www.bantacs.com.au

bennido,
Your facts are correct and there is very little you can do to fix it. The worse thing is that you cannot deposit money into the loan to specifically pay off the private portion. You can refinance and split the loan and make the private portion P&I and leave the deductable portion as interest only. It is even a masive job to work out…[Read more]

jasonamurphy,

Re reading your question I realised that I got so carried away with the overlap issues I completely forgot about the fact that you would no longer have a house on property A when you sell it. This does create a major problem. I note with concern that ID2003/322, ID2003/214 and ID2003/466 suggest that you will not be entitled to any…[Read more]