I’ve sort of answered this question in another post, however, I have problems with the whole acre/hectare conversions thing.

Bottom line….your principal place of residence and up to 2 hectares of land is CGT free, anything over the 2 hectares you’ll pay capital gains tax on. There is no time limit on how long you have to hold a property and…[Read more]

By own residence I take it you mean your principal place of residence…in that case no CGT on the house and 2 hectares of land, regardless of how long you have had it. Anything over 2 hectares – you’ll pay CGT on it if it’s been purchase after the implementation of CGT (Sept 1985 or thereabouts)

Have you been living in the house as your PPOR?

Capital Gains tax is payable on the sale of shares or property that is left to you in a Will. Shares you can’t avoid, but property – if you turn it into you principal place of residence then no CGT.

Cost base for a property would be taken at date of death (from memory) not the date that it was…[Read more]

If you are an accountant then you would probably be aware of the recent case handed down by the Administrative Appeals Tribunal regarding depreciation on rental properties. There was a short article on it in the CPA magazine at the beginning of the year. I think you can look up the actual case on the ATO website. It was FCT v McCormack from…[Read more]

Just doing some basic maths here – feel free to correct me…

buy 1 property per quarter for 5 years. Figures worked on each property being $70k with your provided 10% deposit. That’s $28,000 per year in savings. That would be hard to achieve as a single person and even harder as a single parent.

Wouldn’t you need to be looking at a take home…[Read more]

Have a look on the ATO website…www.ato.gov.au and do a search for Motor Vehicle expenses. There are lots of ways to claim, but in your particular instance.

“I often drive from the follow sort of format
from H being home..

H-A-B-A-H

and would like to know exaclty what i can claim”

A-B-A-H I would suspect.

Comdom hi, on the Tax side well…..

If you run it as a business and your turnover is more than $50,000 then you must register for GST. You claim back input tax credits on everything you spend renovating the place and pay GST on the sale price when you sell. Check with the ATO about the margin scheme regarding GST.

As for income tax. What you…[Read more]

If your ONLY income was from buying, renovating and selling houses, I imagine you would be classed as running a business and the houses you are purchasing would be treated as stock. In much the same way as a share trader who aggressively trades shares for a living treats the shares purchased as stock.

You would therefore have an opening stock…[Read more]

Also need to know how long you have held the property you are going to sell and whether or not it has ever been you PPOR. Reason. If you’ve held the property for more than 12 months (ie 366 days) you are entitled to a 50% discount on the CGT. If you’ve lived in it at some stage as your PPOR, never declared another property as your PPOR, have…[Read more]

I had a chat to the ATO about this topic….out of interest. They gave me three points to consider.

1. The purpose of the plan. The ATO said that if the idea was to claim deductions that you would not normally be able to claim, ie. rates, maintenance etc, they would consider it a tax avoidance scheme.

2. Capital Gains Tax – you loose the PPR…[Read more]

The idea of selling you PPR to a Company or Trust and then renting it back yourself is, I am dead certain, definitely not allowed by the ATO. I think it was a case Phillips v FCT, but I’m open to correction here.

Is this vacant land – CGT is assessed on the increase in value (with some other factors thrown in) and you pay tax on the Capital Gain dependant on the marginal tax rate bracket you fall into.

There have been lots of CGT type questions and answers posted here in the past. Have a look back through or have a look on the ato web-site

Nothing unexpected there. Lots and lots of “cashed-up” southerners coming up to the Sunshine. God help them when we get a decent cyclone season.

Queensland prices seem to be on the up and the locals (I’m from the “hills”) say its because the people coming up from south are accustomed to high prices down there and are happy to pay those sort of…[Read more]

Boring old “beancounter” I’m afraid.[][] Tax Accountant[}][}] on the Sunshine Coast.

Michael as an accountant, I normally provide my clients with a copy of tax returns on request. If a client is leaving a practice (I’ve just started my practice and have a few clients from the old practice I worked with coming to me now), I normally request the following:

1. Copies of 2002 (prior year) tax returns for all entities ie. family…[Read more]

These were residential IP’s. Three units at Caloundra and one house at Perigian. There are (so I’ve heard on the grape-vine) a number of property developers on the Sunshine Coast who will do deals with E Banc Trade Dollars. But I also hear on the same grape-vine that the ATO are VERY VERY interested in the whole trade dollar set up.

You could…[Read more]

I’ve seen clients push through contracts with 120% of the property value as the contract price. But these deals have involved E Banc Trade Dollars and finance. 70% is financed, 30% is trade dollars and 20% comes back to the client in cash. I never could get my head around it.

The sale of any new residential property “that has not been sold before” is subject to GST….provided you are running a business…..tricky area.

You may actually have 2 CGT events happening. One on the land and one on the “improvements” ie the house. Holding costs can come off the cost base ie legals to buy/sell, agents commission etc.

Not a clue about the answers to your questions, but good questions to ask the real estate agent. Thanks heaps.

Max 1999 if you buy a property and renovate it, the costs of the renovation will be added to the cost base of the property. So if you buy a property for $200,000 and throw another $100,000 (big figures in whole dollars are easy to work with), your cost base for the asset (property) becomes $300,000. If you then sell that property for $500,000…[Read more]