Also, it might be possible to add a portion of your interest paid on your PPOR into the cost base of the new land, thus reducing your capital gain. Talk to your accountant.

Make sure you are undertaking the subdivision to realise the best capital value for the land rather than as a profit making undertaking. If you subdivide with the intention to make profit you don't make a capital gain, instead you make a revenue gain which you need to pay GST on.

Hold the land for 12 months to claim the 50% CGT discount…[Read more]

What? Only $20 bills?

I was thinking Benjamins would be gracing your behind

Hi Steve,

I had a couple of thoughts about your situation.

What entity does your business trade and operate in? If you are trading in a trust you might be able to do something more tax effective with your $80k profit each year. Possibly distribute the profit to a company which can lend it back to the business with interest. In this way you only…[Read more]

Hi Ritchie,

Thanks for your interest. I have taken the document down for now.

If you would like a copy please send me an email and I will forward you a copy.

Cheers

Richard

Good point Terry.  Land tax line is currently for SA, think I will have to overhaul that line state by state.

Much appreciated.

Just make sure everyone is aware of the risk.

Tax residency is very different from immigration/citizenship, if everyone plans ahead it should not be an issue, however things can change very quickly.

A disaster would be to have a snap decision that someone was to reside in India (for example, to look after parents or for a new relationship) and…[Read more]

Thanks for the feedback Shahin,

I've labeled SMSF has expensive, more so relative to the other entities. SMSF accounting and tax returns are often more complex and require an independent auditor by an approved auditor which all adds to year end accounting fees. Also I believe SMSF trustees are more likely to need ongoing advice to stay compliant…[Read more]

Do you and your friends have strong ties with India? Do you and your friends spend a lot of time in India?

A SMSF (trustee and majority of contributing members) must be an Australian resident to receive concessional tax treatment.

Make sure you plan ahead for the possibility that one or more of your friends decides to reside in…[Read more]

Having trouble sleeping? Read a tax ruling

GSTR 2003/3 – Goods and services tax: when is a sale of real property a sale of new residential premises

http://law.ato.gov.au/atolaw/view.htm?docid=GST/GSTR20033/NAT/ATO/00001

EXTRACT:

Criteria for substantial renovations

60. Whether renovations are substantial is to be determined in the light of…[Read more]

Terryw wrote:
Many trusts offer these same advantages.

For example to avoid vesting, just set up a company trustee and trust in South Australia. Wait 80 years and see if it works.

Made me chuckle, thanks Terry

Definitely talk to your accountant. On the face of it, looks to be capital in nature.

Have you talked to your accountant about the level of your fees?

Is your accountant possibly doing more work on your MYOB file than you think? Accounting fees can always blow out on this.

Otherwise, for $13k of fees per annum I would expect to be getting a lot of personalised advice.

Thanks for the info Lilian.

I was just referring to the original poster Astroboy71

What didn't impress you Liliian? Was is the same 'uneasy' feeling as Astro?

http://www.businessspectator.com.au/bs.nsf/Article/BHP-wont-proceed-with-Olympic-Dam-expansion-pd20120822-XE94U?opendocument&src=idp

I think it is a real blow for SA. The expansion was an enormous amount of activity for SA. Personally I am not changing my investment plans, I just think we'll miss out on a Perth / WA like boom, at least for the…[Read more]

http://www.brokernews.com.au/article/blue-wealth-fires-back-at-mortgage-choice-60846.aspx?keyword=hayek

Mortgage choice seemed uneasy with Blue Wealth's vested interests too.

My partner and I have sold one 'transportable' (ended up as a built on site, due to access) in regional South Australia and currently building a second.

I my experience buyers can be turned off by a cheap quality transportable versus a known brand.

I would wonder with all the heart ache (customs, freight etc) of importing a kit home it might be…[Read more]

Yes, very good point. Diminishing balance should be used to increase deductions in the early years.

It is an unfortunate tax outcome that when an asset is replaced under warranty you effectively claim your remaining depreciation over a longer time period. But I suppose you now have brand spanking new asset.

http://www.apimagazine.com.au/blog/2012/07/accessing-equity-when-you-dont-need-it/#more-2889

http://3.bp.blogspot.com/-9yX8DAg1tjM/T3rsS9te7rI/AAAAAAAAABA/1KOcSXzjWA4/s1600/Phil-Dunphy-modern-family-16777332-500-282.jpg

Brilliant!