terry

sorry Terry he is so busy giving out tax advice don’t know if he can take on any legal work at the moment.

Agreed Scott. Probably even better if he can find some bum to do the documents for free.

Refer to BRMJCQ case, Cooper case and Skiba case as these demostrate that providing services through a contracting company generally result in failing to qualify as a PSB.

sml

consider whether issuing shares may be more tax effective than transferring shares and the impact of the general value shifting provisions on your decisions.

Have you taken into account any capital allowances claimed on the property in working out your capital gain ?

Is the property held as tenants in common ?

Dan42 wrote:
You can claim back the GST IF:1) You are registered for GST2) You are running a property development business. This can be in your own name, it does not have to be under a company structure.The downside of claiming the GST when you are building is that you would be required to PAY GST when you sell, reducing your profits. If you are…[Read more]

If your intention is to purchase and improve these assets with the intention of ‘flipping’ them then capital gains tax will not be applicable as the profits will be assessed on revenue account not on capital account. This means that things like the 50% general CGT discount are not applicable as the profit is not assessed on capital account.

Also…[Read more]

Ok so business turnover is $5k per week meaning an annual turnover of $260,000. Now the real question is what is the net profit (after accounting for a reasonable owner’s salary say $40-$50k). If this equates to about $40k per annum (after the owner’s salary of $40-$50k) then the pricing is about right as multiples of net profit of between 2 to…[Read more]

Marky

We charge $990 (including GST) for a land tax unit trust if the property is located in NSW. Be careful of the online ones as our provider has found some fundamental errors in many of them including some unit trusts which had merger issues (eeek !!) and one which claimed to be able to obtain the NSW land tax exemption and failed.

Let me…[Read more]

Yes you can negatively gear with a unit trust. The trust will not be negatively geared but rather the gearing occurs at the unit holder level. The depreciation benefits will be at the trust level as it will hold the property and the interest deductions will be at the unit holding level. The loan will be taken out to purchase units in the unit…[Read more]

riti

if looking at changing ownership interests then a unit trust may be a more effective structure. The advantage of a unit trust over individual holdings is that the stamp duty on transfer is not at ad valoreum rates (unless the land rich tax provisions apply) and so you could end up saving a significant amount in stamp duty on transfer.

The formula would need to take into account a number of variables

1. Structure. Company no CGT discount. Other structures get the 50% cgt discount.
2. If asset held for less than 12 months then no discount otherwise consider structures and whether discount applies.
3. Calculating cost base. What to include what not to include.
4.…[Read more]

Agree richard missed the bit were he said that there was an amount of 100k outstanding. That portion will become deductible.

Are you saying that you will use the $210k to purchase a property which will become your principal place of residence and then you will rent out your existing home ?

If the answer is yes then the interest on the $210k will not be deductible as the purpose for which the funds were put was to purchase your new principal of residence for which the…[Read more]

A few things to consider

1. Losses in a discretionary trust will be “trapped”. i.e. they can’t be distributed to the beneficiaries but need to be carried forward to be offset against future income. This can present some cashflow issues.
2. Distributing from a trust to a corporate beneficiary. You will need to physically make the distribution…[Read more]

YoungInvestor

Recently posted an article discussing this type of scenario

http://www.omegapartners.com.au/2010/12/capital-gains-tax-renting-the-family-home/

Mike is correct. The broker (and the person giving him the advice is wrong).

Refer them to http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/89363.htm

“Legal interest is determined by the legal title to the property. Where an investment asset is held in the name of one person only and the loan used to purchase the investment asset is held…[Read more]