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You can lodge the Withholding Variation any time you like – its just an estimate of your taxable income for the year. Do an ACCURATE budget, if you ask them to withhold too little tax they will do, but you may be denied this in future years. Lodging now will just be for 2004-05, and you have to do it again for next year, why not wait until then whne you have better figures?
In Sydney, I suggest Strategic Wealth Management http://www.strategicwealth.com.au, Nick Moustacas
Thanks guys,
Found out it is easy to add a spouse’s name, little harder to take a name on off a contract. Nothing black and white about the topic in NSW.Doesn’t matter anyhow. Just got 11th hr GAZUMPED big time. [angry2] A slow death by listening to 1000 hours of ACA stories with commentry by J**man is too good for the average RE agent.
Thanks Coasty, very detailed and informative reply.
I didn’t say why, just asked the question re CGT. I hope others ready got a little out the information provided.
If you were building a house on vacant land with the intention of renting it (ie earning income), then you may be able to claim interest and outgoings even though there is no rent (yet). Does this apply to you, maybe. Go to the ATO site and look up the “Steel” case. There is a final ruling on this subject. Read up and then show your accountant. If he doesn’t know about the Steel case, get another accountant.[evil5]
The new tax is for all investment properties etc, but also says you have to live in your home for 2 years to be called a PPOR and so exempt. So, if you are selling your home of 18 mths, is the tax payable?
Or in may case, what was an IP for 1 year and has been PPOR for the last 6 months, I think that gets the 2.5% as well. Not happy [comp]
Not sure about a 4 townshouse arrangement, but when I sub-divided a block of land and sold off the new lot, CGT was based on the original purchase date. Sample numbers of how it worked for me.
purchased 1/4/02
sub-divided 1/10/02
sold 1 lot 1/4/03CGT purchase date was 1/4/02 (ie more than 12 months). Base cost of land was the pro-rata on area less pro-rata purhase and developement expenses. eg
Whole lot 1000m
New lots 600m and 400m
Sold the 400m lot which is 40% of originalPurchase price $100,000
Purchase costs $4000
Development costs $10000
Sales costs $5000Base cost of sold land = 40% of $100k less 40% of $4k and $10k and any sales costs.
Base cost of 40,000 – 1600 – 4000 – 5000 = $29400Hope that helps (and correct) [wacko]
