i’ve not read steve’s book,

but I disagree with not claiming depreciation because of the time value of money….the taxation of inflation. $100,000 now is worth much less than after 10,20,30 years. Even if you had to sell and pay CGT, you are give increase cashflow now, in the present.

Also I follow the principle when I buy a good asset that’s…[Read more]

Yes you can,

you can do it several ways, the commissioner would allow

1. u estimate the cost of construction and you can claim the costs. Some costs are fixtures and fittings (40) and some are capital (43)

2. hire a quantity surveyor and he’ll estimate the costs for you

3. use an architect and he’ll estimate the costs for you

Alf

Div 43 is when you claim building depreciation
Div 40 is when you claim furniture

eg. You paid $100,000 for property
u sell for $150,000
Div 43 – u claim $10,000 of building depreciation
Div 40 – u claim $5,000 of fixture and fittings

When u sell, u have to do balancing adjustment of div 40 – lets assume its $3000

You assessable CGT is…[Read more]

Did u claim any depreciation on the property?

You can only claim the book if you already have an investment property
you cannot claim it if u use it to buy an IP

40% Shares (90% Blue Chips, 10% speculative)
10% Managed Funds
40% Property (residential + commercial)
10% Businesses (private)

These give good cashflows for further acquisitions

Alf,

that’s the simplified version
but there are so many variables
need to know what your situation is
what entity did you use to buy this asset

Alf,

if you claim Division 43, then the amount you claim will be equal the amount reduced by your cost base. this is assuming your asset was purchased after September 1985

if you claim division 40, then there will be a balancing adjustment from the time you dispose of the asset

M1in12

can you tell me where i can find this information please cause it looks like the information i have may be erroneous

thanks

Tilly,

in regards to MVA, compulsory third party covers all damages to people whom you injury. the insurance company pays for all that. the one you should look out for is people who work for you at your home and slip and fall and break their neck. if they’re not covered and you’re not covered, then you’ll be in deep S#%t

Westan

ru sure?

I spoke to this tax lawyer and he told me a change in trustees will trigger a CGT event. The trustee is the owners of the asset and held in trust for the trust. If you change trustees, the ato will require a re-evaluation of the trust assets and wack a CGT on that?

that’s what I’ve been told anyway

I’ll have to look this up now

Yep, you can do that for five years only though

Age is never a barrier,

‘just do it’ – Nike

If you change trustees, you will trigger a CGT event, I think its E1 or something like that
Also there will also be stamp duty issue on change of trustee
ergo you have to decide now before who will become the trustee.

westan,

why do u want to put your home in a family trust
and when you say a family trust, what do you mean by family trust?

And yes, my accountancy fees are quite heafty, but the tax savings and asset protection are worth it

y

for tax purposes, you should not purchase appreciating assets under a corporate structure

buying things in your own name could be parlous

u should be concerned about litigation and tax consequences

look at the structure that suits u

unfortunately in this complex society we live in, buying assets in your own name is parlous

don’t forget to include GST in your cashflow

Under the GST act, anything that can be considered a new residence is GST applicable.

Did anyone watch the block, the sale prices of the block were GST inclusive. Ergo Kerry Packer had to pay the GST on the sale price to the ATO.

So if you were not sure and sold your property for $200k, you may be liable for a $18,180 tax bill, depending on…[Read more]