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  • Profile photo of puissancepuissance
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    @puissance
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    August 28, 2003 - 1:28 am

    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 your situation.

    thats why you may require to get a GST ruling.

    Profile photo of puissancepuissance
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    @puissance
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    August 28, 2003 - 1:23 am

    The best thing to do is buy an IP under your SMSF
    Unfortunately there are many laws that need to be followed. If you are in breach of these laws then you may be dissallowed the tax deductions and be taxed at 47%.

    You can’t gear with SMFS ergo you need cash to fund your property. If you have more than 5 memembers in your SMFS then you have alot of reporting requirements.

    Alternatively, you can buy with a hybrid trust and have your smfs be a unit holder. CGT are good at only 10% if held > 12 months and income is only taxed at 15-30%.

    Problems will arise if you exceed your RBLs though

    Profile photo of puissancepuissance
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    August 28, 2003 - 1:03 am

    Hybrid Trust with corporate trustee
    Primary beneficiary being 2 different discretionary trusts and unit holders being superannuation fund, individuals, corporate beneficiary and the 2 different discretionary trusts.

    Profile photo of puissancepuissance
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    August 27, 2003 - 5:45 am

    Personal
    Corporation
    Trusts – discretionary
    – hybrid
    – unit
    Superannuation Fund
    Offshore Trust and Offshore corporations (Canary Isl, Bahamas, Liecheistant, Nevada, Monaco, Austria)

    Profile photo of puissancepuissance
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    @puissance
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    August 27, 2003 - 4:07 am

    The people with the highest income would purchase units in the trust and claim an income loss pursuant to ITAA 97. Because the cashflow is negative, there would not be any distributions from the trust.
    U need an appointor, because there are four parties involved. The trustee is important because 2 different couples are involved.
    U may also want to include in the deed a corporate beneficiary

    Profile photo of puissancepuissance
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    August 27, 2003 - 4:01 am

    what’s your situation first?
    do u earn > $80,000
    do u have a family
    are you a professional
    are you at risk of litigation

    Profile photo of puissancepuissance
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    August 27, 2003 - 3:35 am

    is the cashflow of this property positive or negative
    who will be the trustee? who will b the discretionary beneficiaries and who will be the unit holders
    how is the gearing going to be passed?

    Profile photo of puissancepuissance
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    August 27, 2003 - 12:39 am

    Don’t forget the GST, depending the extent of the reno, when you sell, you may be liable for GST on the Sale
    so if u sold it for $200k, you may be required to pay $18,180 GST on the sale, so it may not be worth it.
    you should get a private GST ruling b4 u renovate

    Profile photo of puissancepuissance
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    August 27, 2003 - 12:36 am

    When u sold the reno, did you pay GST on the reno? Depending on your circumstances, you may be liable for a $25,000 GST bill on the sale of the reno, according to the GST act

    Profile photo of puissancepuissance
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    August 27, 2003 - 12:33 am

    Is the property predominately for residental premises, if it is, then its input taxed, ergo you cannot claim the GST you will be charged by the agent.

    It it is commercial and you are registered for GST, you will be able to claim the GST paid back in your BAS either quartlery or monthly depending on your situation

    Land tax is an annual tax, but is a deductible expense

    Profile photo of puissancepuissance
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    August 26, 2003 - 5:27 am

    thanks

    Profile photo of puissancepuissance
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    August 25, 2003 - 11:18 pm

    U need to work out your cost base.
    Does the amounts mentioned include GST?
    The land in question may include GST depending on the purpose u use it for.
    Is the property subject to GST or is it input taxed?

    Profile photo of puissancepuissance
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    August 25, 2003 - 11:16 pm

    IO loans are good for increasing cashflow, but another important point that everyone seems to forget is the taxation of inflation.

    If u borrow $100k now and pay IO for 10 years, u still only owe $100k in 10 years time which is significant less if u take inflation into account.
    Warren Buffet talks about this all the time

    Profile photo of puissancepuissance
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    August 25, 2003 - 3:20 am

    ru guys worried about the government removing negative gearing allowances?

    Profile photo of puissancepuissance
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    August 25, 2003 - 3:19 am

    yep, there are no CGT

    Profile photo of puissancepuissance
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    August 25, 2003 - 3:18 am

    not a problem

    Profile photo of puissancepuissance
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    August 25, 2003 - 3:17 am

    you don’t

    Profile photo of puissancepuissance
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    August 23, 2003 - 10:52 am

    PIA is a very basic software package which helps you assess the cashflow of the property

    If you know what you are doing, you can work out the cashflow for yourself.

    I do not recommend it unless you know how to work out the cashflow yourself first. When you know that, then the software is good, cause it works out the cashflow of the property quickly.

    there is not enough input information for you to use it as record keeping.

    I’m still looking for a software that allows me to track my deprection of my properties, does anyone know if there is one out there?

    Profile photo of puissancepuissance
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    August 23, 2003 - 10:25 am

    there are heaps, u just need to know where to look

    Profile photo of puissancepuissance
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    August 23, 2003 - 10:21 am

    who made up this 11 sec rule?

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