Hi Guys,

What you have sounds like a common scenario. The tiler is right when he says that the old tile and lino glue has to be removed first.

You may be able to find another floor preparation contractor that has a smaller (read lighter) grinder that is more portable and can be muscled up some stairs. Certainly they have hand held grinders that can also do the job, but are more labourious.

Don’t go down the ‘solvents’ road as this is smelly and dangerous.

Also you could hire a hand held diamond grinder from ‘Kennards’ or the like and do the job yourself if your so inclined.

Finally ensure the machines are ‘dustless’ as this will make the job a lot cleaner at the end.

An Education in Income Tax Law

Point 1

Not all accountants, or tax practitioners, read and understand tax law the same way. That is why, for example, we see so many issues in tax law go to court for the judges to decide on what is right and what is wrong.

It is also interesting to note that it is not uncommon for court decisions on tax related matters to be split 3 in favour and 2 against…or vice versa.

So, if our legal system and the smartest and wisest people in the country cannot be absolutely certain how the tax law should be read, interpreted and applied, then….how can a simple accountant hope to be 100% right, all the time?

Clearly, they cannot.

All they can do is seek opinions from more learned people than themselves and study the law and the court decisions that apply to the law.

Point 2

If you ask an accountant…can I claim this, or that? The answer has to be a yes, or a no.

Accountants are taught and trained to be conservative and so they will often say no as a way of protecting their client.

However, if you ask an accountant “how can I claim this, or that?

Then you are assuming it can be done and the accountant will open his or her mind to find a way for that particular item to be claimed.

This is one of the most important tools an investor can develop.

Point 3

From the ATO Ruling Mt 2042

8. On the other hand, relatively inexpensive Christmas gifts of food or drink that will be consumed by the employees at home (such as a bottle of whiskey or wine or a hamper of food) are not regarded as being the provision of entertainment for the purposes of subsection 51AE(4). Expenditure incurred on such gifts will be treated as an allowable deduction in calculating the taxable income of the employer.

Point 4

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 1 – INTRODUCTION AND CORE PROVISIONS

PART 1-3 – CORE PROVISIONS

Division 8 – Deductions

TABLE OF SECTIONS
8-1 General deductions
8-5 Specific deductions
8-10 No double deductions

SECTION 8-1 General deductions

8-1(1) You can deduct from your assessable income any loss or outgoing to the extent that:
(a) it is incurred in gaining or producing your assessable income; or
(b) it is necessarily incurred in carrying on a *business for the purpose of gaining or producing your assessable income.
[
Note:
Division 35 prevents losses from non-commercial business activities that may contribute to a tax loss being offset against other assessable income.]
History
S 8-1(1) amended by No 90 of 2000, s 3 and Sch 1 item 1, by inserting the Note at the end, applicable to assessments for the 2000/01 and later income years.

8-1(2) However, you cannot deduct a loss or outgoing under this section to the extent that:
(a) it is a loss or outgoing of capital, or of a capital nature; or
(b) it is a loss or outgoing of a private or domestic nature; or
(c) it is incurred in relation to gaining or producing your *exempt income or your *non-assessable non-exempt income; or
(d) a provision of this Act prevents you from deducting it.
For a summary list of provisions about deductions, see section 12-5.
History
S 8-1(2) amended by No 66 of 2003, s 3 and Sch 3 item 57, by inserting “or your *non-assessable non-exempt income” for “*exempt income” in para (c), applicable to assessments for the 2003-04 income years and later income years.

8-1(3) A loss or outgoing that you can deduct under this section is called a general deduction.
For the effect of the GST in working out deductions, see Division 27.
[
Note:
If you receive an amount as insurance, indemnity or other recoupment of a loss or outgoing that you can deduct under this section, the amount may be included in your assessable income: see Subdivision 20-A. ]
History
S 8-1(3) amended by No 41 of 2005, s 3 and Sch 2 items 2 and 3, by substituting “Note” for “Note 1” in Note 1 and repealing Note 2, applicable to assessments for the first income year starting on or after 1 July 2005 and later income years. Note 2 formerly read:
“Note 2: A cash accounting regime applies for general deductions, and some other deductions, incurred by STS taxpayers: see Division 328. “
S 8-1(3) amended by No 78 of 2001, s 3 and Sch 2 items 3 and 4, by renaming the note as “Note 1” and inserting Note 2, applicable to assessments for the first income year starting after 30 June 2001, and for later income years.
S 8-1(3) amended by No 176 of 1999, s 3 and Sch 3 item 2, by inserting the reference to Division 27 at the end, effective 1 July 2000.
S 8-1(3) amended by No 16 of 1998.

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Hi

I am devastated to read the comments in this thread, but, they were brought to my attention by someone who thought they were defamatory….

I am well aware that some people will not understand what is an allowable tax deduction and what is not allowable under the tax law.

The book showed possible tax deductions which are common for many, many businesses.

Does BHP give rewards to its employees in the form of a gift hamper? Does Coles Meyer give small gifts to its employees?

No, not all items are deductible to all people and in all circumstances and I apologise if I have given the impression that they can be.

However, a trust can provide small gifts to its employees (and if we look at the tax law we will see that emmployees are defined very broadly and includes directors) as part of its normal day to day operations under Section 8-1 of the 1997 ITAA.

As fot the hynrid trust comments….I am very hapy to provide a copy of the Private Binding Ruling from the tax office confirming that this is acceptable to the tax office.

Perhaps the person who takes such great umbrage and wishes to speak ill would be wise to act as a professional and do their research properly before making such inflammatory comments.

Or, they may wish to politely ask me why and how and I would have gladly given my time (for free) to explain to them my thoughts and discuss the issues.

Today, it seems is a very sad day in the world when people behave in such a manner. Whatever happened to respect, politeness and courtesy?

Sigh

Dale

Kate

I think it’s a briliant idea – go for it. Yes, you do defniitely need to be very organized and professional so that buyers feel safe buying from you. It is a legal requirement to have the contract prepared….your lawyer can advise you on other protocol as well. Pretend you are an agent yourself and go through all the same steps that they would with a new listing. Present it as well as possible. Enlist the tenants cooperation. (You could even pay for a cleaner before the Opens if you think the property value merits it). You could also pay an agnet to run through the process with you and get local tips and advice. That’s what would I would do. I would sling someone $200 cash to sit with me for an hour and go through all the best local avenues. If you are not comfortable negotiating, you might even be able to enlist a friend’s help to do this for you!

Good luck!

mint man,
I would love to watch these videos and look at the info but I cant get to the page. the link steve sent in the email didnt work for me.

any suggestions?

Thanks for your help mate

~rae~

Hi!

Why is it you want to get a personal loan from family and friends?
Are you just starting out in property investing and if so, why not use a bank?

Think long and hard about involving family and friends, especially if you are new to this game. If there are problems ahead, your friendships may turn sour. They may think ……
– you are just using them
– they may never see their money again
– they have the right to interfere with your investing decisions
– they can give you their negative opinion about property
– they might change thier mind and want thier money back pronto

If however you have done a few deals, and have a few (3 or 4) investment properties already under your belt, then money makes money and banks will will lend you more than enough to keep going, if they see you can handle it well.

My personal opinion is that if you are new to property investing, do the hard slog and prove to yourself and the bank that you can do it on your own. The 1st one is the hardest.

I created a wealth creation plan and gave it to my bank / broker stating our (my & my hubby’s) plans to borrow approx 1 million to finance positive cashflow investment properties. I stated our income, what we owned and owed and we were on our way with approval to borrow up to half that. You need to take the small steps in order to get to the bigger ones.

Using a broker initially can be a good idea as they want you to get a loan as they get a commission, whereas if you go to a bank. they get a salary and can say yes or no without it affecting their income.

Others may have different ideas, but this was the situation that I could sleep well with, without worrying about my family and friends opinions.

Hope some of that helps!
All the best!
Pepsi