wormit,
If the high income earner’s employer allows salary sacrifice have a look at the rental property kit at http://www.bantacs.com.au for a further boost to cash flow.

Julia

Lighthouse,
Using a company or trust may neutralise your tax benefits if the property is negatively geared. Unless you use a hybrid trust which is more that $1,000 and not all hybrids pass the smell test.

Julia@bantacs.com.au

SeanOlivia,
You cannot exempt a house as your PPR until you at least move into it. The only exemption is if you are renovating it and then move in for at least 3 months. Renting it out from the time of purchase will always mean that you will have a portion of the capital gain subject to tax. Once you move in & establish your PPR as per TD51 you…[Read more]

CJS,
I’m not talking about buying way out in a mining
town. My example is based on typical properties in
one of our fastest growing shires, Caboolture. The
only catch is you need to be a high income earner
whose employer will allow you to salary sacrifice.
The following is based on a couple where the high
income earner earns $80,000pa and the l…[Read more]

JLtara,
I am an accountant in Queensland so not a lot of help to you but the following article will give you the low down on the tax consiquences of wraps:
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…[Read more]

Dave,
Just some information on the tax effect of the transaction to make sure you know what you are getting yourself into:
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…[Read more]

Flash,

The ATO has just issued a discussion paper on this matter. It is available on their web site and has a very detailed list.

Julia@bantacs.com.au

Wallflower,

Oh now I understand. Thanks

Julia

Alright Wallflower I’ll bite. Just where has the house gone, that Steve says is trading stock, if there is nothing left to sell?

Julia

Tammy,

Go to my web site http://www.bantacs.com.au and down load my rental property booklet. Its free and should cover all your tax questions

Julia

It does not matter whether the property is residential or commerical the CGT 50% discount applies if the property is held for more than 12 months and is not held in the name of a company. Accordingly, any depreciation reduction in the cost base only has half the effect. If you have a commercial property that is being used in your business you…[Read more]

Elizma,
We are only south of Brisbane. Bribie Island Road but at least visit our web site and down load our booklet on rental properties and the one on CGT. This site is updated weekly and there is a newsletter posted twice a month.

http://www.bantacs.com.au

My View:
Purchasers of Rental Properties can blow their budget by relying on incorrect depreciation calculations.
Property Owners expecting to receive a large tax refund cheque to help fund the costs of the rental property are quiet often disappointed to find out the information provided by a Developer or Quantity Surveyor is not correct. Mind…[Read more]

Who Says You Can’t Buy Positive Cashflow Properties?

I’m not talking about buying way out in a mining town. My example is based on typical properties in one of our fastest growing shires, Caboolture. The only catch is you need to be a high income earner whose employer will allow you to salary sacrifice (refer kit at http://www.bantacs.com.au). The…[Read more]

With Regard to the building write off mentioned above don’t just assume a 2.5% pa 40 year write off There are many ways your property could qualify for 4% write off but as this only allows it to be depreciated over 25 years since construction it may not work in your favour if the building is getting on.
The benefit is in the detail for e…[Read more]

Steve,
No CGT means no CGT concessions so 100% of profit is taxable on sale but not until settlement.

Julia

I cannot advise you on the tax laws of other countries but if you invest via a structure other than your own name you will miss out on the following:
Overseas Rental Properties
Newsflash 61
In ID2002/764 the ATO clearly states that, from 1st July, 2001 Section 160AFD allows the interest, borrowing costs etc. on an overseas rental property to be…[Read more]

Just Starting,
Down load the free rental property booklet from http://www.bantacs.com.au. Just go to Acess and Print Newsflash booklets from the main menu

try http://www.bantacs.com.au but no forum yet.

Sorry but I agree with ID 2004/58 it is simply explaining a point that is already covered in legislation so it does not matter that it is only an ID. The following is an article I wrote on wraps back in February:

Wraps – Vendor Finance Arrangements
Newsflash 74, 15th February 04

If the Vendor Finance arrangement has the following features the i…[Read more]