Generally there is no time frame in the law to re establish your PPOR.  You just need to be able to prove you have lived there.

You may not have to move into the property to qualify for the PPOR concessions depending on your history of the property and whether it still qualifies as your PPOR under the 6 year absence rule.  If it does, then you d…[Read more]

It appears the key is to make sure you are a tax resident of Australia when you sell.

If you are as resident at the time of sale, you get all the other previous exemptions like the 6 year absence rule.

Therefore, if you are outside the 6 year time period, you can still get the 6 year exemption and then be taxable on the days that exceeds…[Read more]

Hi all,

Steve has asked me to clarify some of the issues raised.

The Bill initially introduced (8/2/18) to remove the CGT exemption for non residents lapsed when the 2019 Federal Election was called.

Unfortunately the Bill was reintroduced on 23/10/19 and was given royal assent on 12/12/19

Key points are:

– The measures apply from 9th May…[Read more]

Hi,You want to be selling the depreciable assets at their written down value so that you do not make a profit or loss on them.  These assets are not eligible for the capital gains tax discount.  the best thing is to include a depreciation schedule in the contract of sale showing the assets at their written down value.To calculate your capital g…[Read more]

Hi Rob,Capital Gains Tax is calculated on the contract date.  To get the 50% discount, you effectively need the property for 12 months and 2 days between those contract dates.  Effectively, a sale after 3/2/08 would have you eligible for the discount provided it is an investment asset.Cheers,Mark

If you’ve held the property for more than 12 months (contract date, not settlement date) and assuming it is in your personal name, you will be eligible for the 50% capital gains tax discount.

Therefore, even if you are on top marginal rate of 48.5%, your effective tax rate is 50% of that (24.25%).

That’s whey when using a trust for property…[Read more]

Hi Tom,

The cost can be paid by the trust as it relates to the running of the trust structure.

A company trustee shouldn’t be trading in its own right and therefore will not have a bank account to pay such expenses.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Hi Property Passion,

The answer is no.

In order to claim GST, you must either be registered or required to be registered. This means that is must be in the course or furtherance of an enterprise.

Simply put, if you were building the property to on sell, you would be regarded as running a business and be required to register for GST. You would…[Read more]

Hi Meetrix,

If you are moving to Australia permanently and considered to be an Australian resident for tax purposes, you are assessable on your worldwide income.
You would have to check with your accountant in the Netherlands but I’d imagine you would still have to do a tax return for your rental property over there also.
If you have to pay tax…[Read more]

Hi Shrekster,

These costs are know as borrowing costs and are claimed over the life of the loan or 5 years (which ever is the shorter).

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

The profit margin on the wrap is not assessable until the property settles. Wraps do not fall under CGT and are taxed as ordinary income (there CGT discount will never apply).

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Hi Bardon & Tony,

My understanding is that there is a 15% withholding tax on the dividends paid from the U.S to Oz.

The withholding tax is offset against your Australian income payable on the dividend.

Depending on which state you incorporate your U.S C Corporation, you may only be paying 15% income tax in the U.S.

Cheers,

Mark Unwin
Williams…[Read more]

Hi Bardon,

The LLC can purchase the property and rental income can be distributed to a C Corporation you setup (U.S company). U.S state & federal tax is paid on this.

Capital gains the LLC dervies are distributed to your Australian trust and taxed in Australia.

To get the money from U.S to Oz, the C Corporation will need to pay a dividend to…[Read more]

Hi Landt,

The valuation method doesn’t mean you pay more or less tax. It is dependent on how much the property has gone up in value whilst it was your PPOR.

You can only have one PPOR (there is a small time limit where you can claim both in between moving). Therefore it is your choice whether you treat your IP as being your PPOR (in which case…[Read more]

Hi fellow Tiger fans,

It is a great start to the season and a win is a win but lets put it in perspective.

We have beaten teams that finished 2nd & 3rd last in 2004 and Freo in Melbourne (they were a disgrace last Sunday – but it was enjoyable to watch![biggrin].

Hey Skippygirl, I was at that 1995 final also. What a game, bring back Matty…[Read more]

Oshen,

I may have read your post incorrectly but just to clarify –

You will only be able to claim the loss if your deductions were greater than your income. If your deductions result in your income being between $0 – $6000, you will not be able to carry forward.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

The tax office is okay with you doing this provided the valuation is fair. (i.e. independent valuation).

There are no capital gains tax implications however your cost base will become the valuation of the property once it is available for rent.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

That’s right Derek.

When the property is originally your PPOR and then changes to IP, valuation method is taken.

When property is IP that changes to PPOR, number of days to used.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Hi Jenny1,

If the property was first purchased as IP, you must pro rata the number of days you held it for investment as opposed to the number of days PPOR. The capital gain is then reduced by this %.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au