Well not quite, you only claim the costs once, and you claim all the rental costs against your rental income. Where the costs are greater than the income, the result will be a loss. Regardless of whether the rental turns a profit or a loss, the outcome is applied to your other income.In the example of:Taxable Income = 90 + (70 – 33) = 127The…[Read more]

It's something like:Taxable Income = Other Income + (Rent – Costs)So for you its:Taxable Income = 90 + (70 – 33) = 127for a negative geared property it might be:Taxable Income = 90 + (15 – 25) = 80Once you work out your taxable income, then apply marginal rates.

The primary benefit of a company is limited liability (if anything goes wrong, litigators can not pursue you personally). And the primary benefit of the trust is the ability to disperse income to a range of beneficiaries (ie: children). The two can operate in tandem, with a company as trustee for a trust.The company itself pays a flat rate of tax…[Read more]

basically your right.. I'd say "your profit will be taxed at marginal rates subject to a 50%", rather than "half is taxed and the other half is untaxed"… but you know, you say tomato personally.. in the example you give I'd only give up my PPORE when they pried it from my cold dead hands.. but thats just me.consider this:"I'll buy a property,…[Read more]

Your best bet might be to look for an accountant (rather than financial adviser) in your area, just call a few & they should be able to give you a set price for a one off consult.

certainly is acceptable for ATO.. no problems there

2morroW wrote:
A second question I have is about where to buy. I'm not really fussed and don't want to make an emotional purchase. I've been thinking that Geelong is good option but wonder if any other areas around Melbourne have growth potential over the next 10 years or so? I am looking to spend no more than 350,000 max but would prefer…[Read more]

Raydenhead wrote:
Ring the ATO, they may be able to answer your question without charging you a fee.

That's probably true, but they usually give the worst answers, and they wont give you the context of other options. The ATO will simply tell you that your using your home to generate taxable income, therefore you must declare the income,…[Read more]

If your careful.. it could be a very effective approach, tax wise.However, you'd have to "move in" (think furniture, utilities, mail, etc) for the first 6 months. This would give you 2 advantages:1- you'd be eligible for the $7000 FHOG – which will go a long way towards the rent that your not getting, and 2- thereafter you can extend the principle…[Read more]

Hi Hawkeye,

In short, you have to actually move in.

You can extend the PPORE on a property after you move out (regardless of whether your renting or living in a home you own), but you can’t just nominate one of your investment properties because your currently living in a rental.

They’re both deductible capital items, and can be depreciated.

In the case of the antenna, its likely less than $1000, and could therefore be allocated to a low value pool.

Im not a broker… but they get commission for any finance they organise for you. Usually a finance broker is only too happy to give you some advice in anticipation of being able to organise finance for you in the future. If you call a broker you can always ask them what their fee structure is.

Hi Intrigue,

Terryw’s advice is right on the money. Talk to an accountant, and have them recommend a local finance broker.

Talking to your local branch is tricky, they’re representing the interests of the branch, not yours. Also, unfortunately they often have no training nor experience whatsoever, aside from a 2 week crash course in filling out…[Read more]

NewbieInvest wrote:
Not the best time of year for this to happen as I guess not much happens over the christmas period.My question is how long should I leave it before I start to hassel the agent to get someone in the property. I don’t want to be a pain but at the same time I expect good service from my property manager.

Its a sad fact of life…[Read more]

The ATO’s definition of a repair or improvement has evolved over time. It used to be “like for like” was a repair, these days they’re a little more hard-line about it:

ATO wrote:
If you have to replace something identifiable as a separate item of capital equipment (such as a complete fence or building, a stove, kitchen cupboards or a…[Read more]

Hi lisa,

the thought of paying 4mil in tax makes my stomach turn, I’m sure it does yours also. As terry said, you will need a good accountant to come up with a good plan. If its difficult to get a recommendation for one, then pick 3 from the phone book.. even if 2 of them waste your time and 1 of them saves you 1% CGT thats a win right?

I hate…[Read more]

Hi pullmyfinger..

Based on your info, my best guess is an annual net loss of around $31k to $33k. Considering 70% of that loss will be applied to your husband’s taxable income, and 30% will be applied to your own, your tax savings will be between $9k and $10k.

There’s a great online calculator for that…[Read more]

To claim the PPORE on a property between the time you sign the purchase contract and the time you move in, you have to move in as soon as is practically possible.
http://www.ato.gov.au/individuals/content.asp?doc=/content/57404.htm&page=5&H5
says:

Quote:
If you could not move in because the dwelling was being rented to someone, you are not…[Read more]

not quite…

You still need to lodge a tax return showing your rental income and expenses, which will result in a negative taxable income.

Re: working, it’s certainly a can of worms. There’s a number of implications to earning both Australian income and “Foreign Source Income”, too many to mention here. Long story short, its unlikely that your…[Read more]

Hi Catalyst,

I’m not sure of the rules elsewhere, but here in WA… prospective buyers (accompanied by the owners agent) do have the right to “reasonable access”. If I flatly refuse access, with no good reason, a magistrate will order I provide access for say, 1 hour every tuesday afternoon or something.

Certainly they have to ask me before they…[Read more]