Misty1,
The ATO Rental Properties 2003-04 publication states on page 3 that Rental Income includes:
“Associated payments may be in the form of goods and services. You will need to work out the monetary value of these.”

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

jasonamurphy,
What a challange. I’ve had to break this into bite size chunks. As I work through them it seems to me you gain much more benefit from leaving the PPOR gap on your first home. But in case I am missing a possible scenario I have included all my references so the discussions can open right up on what you should do.
You will need to…[Read more]

Misty1,
If the proeprty is under 5 acres then it you live there you can exempt from CGT if you sell the whole property to the same person. If you are not going to do this makes no difference for tax purposes just apportion cost base amongst the sub division.

julia@bantacs.com.ay

chrisrenee,
On http://www.bantacs.com.au there is a checklist for rental property owners that may help jog your memory.

julia@bantacs.com.au

Kp,
Settlement is when the title to the property passes to the wrappee. I have no professional expertise regarding stamp duty and it varies between states so I will leave that one for someone else to answer.

julia@bantacs.com.au

KP,
The principle portion of the amount received is part of the deposit so not accessable as such though the sale itself is accessable.
The only time payments from the wrappee are rent is if they happened to be a normal tennant before you entered into the wrap agreement. Or you rented it to another tenant first. If either of these has happened…[Read more]

ChupaChup,
It is a question of fact. In other words the onus of proof is on you. If the property is managed and the first inspection does not suggest painting you are home and hosed. Else look for other evidence such as water or tenannt damage since purchase if the painting is done soon after purchase. If it is a mulitple dwelling in Qld the…[Read more]

Skippygirl,
“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”

You only declare the interest you receive as income and deduct against this income the interest you pay the bank. The principle portion of the repayment…[Read more]

As the house is trading stock CGT does not apply. Normal income tax applies at the time of settlement.
The wrappee is considered to have taken up ownership for CGT purposes at the time the wrap is entered into. CGT event B1 happens when someone has the right to the use and enjoyment of an asset and there is an agreement that the title will…[Read more]

gecco,
If the property is positively geared you will be taxed in NZ then have to include the net result in your Aust tax return as foreign income with a tax credit for tax already paid in NZ. If the tax already paid in NZ exceeds the tax in Aust you cannot us it to offset tax on Aust income but you can carry it forward for 5 years to offset…[Read more]

If you don’t rent it out the cost base will be your original purchase price plus buying costs, selling costs, rates, interest, insurance, repairs & maintenance during the whole period of ownership.

Do you mean if we DO rent it out? We would be able to reduce the ‘taxable capital gain’ by all these expenses.

No I didn’t mean that. Firstly…[Read more]

Scott,
As wrapped properties are trading stock you cannot claim building depreciation. Other expenses such as rates and insurance are deductible to you but as the wrappee would normally reimburse you for these expenses the reimbursement is income to you so the net effect is nil in your tax return. The wrappee is not entitled to any tax…[Read more]

Roofarmer,
Both lots of advice are wrong. CGT does not apply to Wraps it is normal income tax from sale of trading stock but you are not taxed on the income until settlement.

Here are the examples for Skippygirl and rulings for the doubters.

If the Vendor Finance arrangement has the following features the income stream received, once the wrap…[Read more]

Myydral,
The expenses are claimed in the year they are incurred.

julia@bantacs.com.au

Misty1

You need to have a nexus between the income earned and the expense incurred. For example the door I trust was purchased as a repair. Its just not a repair until you carry that out. As for the furniture put it in the property anyway even if it is in the garage.

Julia

Fnomna,
I assume that you purchased your first house and moved straight into it. If so section 118-192 resets your cost base at the market value when you first rent it out unless you elect to leave your main residence exemption with your first home until you sell it. In the latter case the 6 years is relevant. Though I wouldn’t recommend the…[Read more]

Misty1,

For more free information try http://www.bantacs.com.au and download their rental property booklet, the CGT booklet would also be useful.

Julia

Mel,
Yes QS reports normally cover the plant and equipment but as you can estimate the cost of these it is not normally worth the cost of a QS report for pre 17th July 1985 properties as no building deprn claim availble. In this part of my answer I am refering to the older property, though I admit now when I look back I didn’t make this…[Read more]

brahms,
I assume you are referring to qualifying for the 50% CGT discount and the 12 month wait.
A fixture to land becomes part of the land so at common law the acquisition date for the house would be the date the land was acquired. Section 108-55 of the CGT legislation has some exclusions to the common law principle but they would not apply in…[Read more]

bennido,
Travelling costs to purchase a property are a capital expense so not deductible against the rent. Even though they are capital costs they are not included in the cost base on sale either, because they do not fit within the definition of the 5 elements that make up the cost base as per the legislation. This opinion is covered by the ATO…[Read more]