Angie’s right. Depreciation can give you a “paper loss” to offset the income thus reducing the tax you’re liable for.
Also purchasing in the correct structure (trusts etc) can give asset protection whilst reducing your personal tax liability.

Rod.

Hi doogs,

Your assumption is correct. As land tax is state based (and calculated differently in each state) you have a separate threshold for each state.

Rod.

Well done Richmond, I’ll look for your name in the credits.

I agree with the other comments, 75K is a pretty good wicket to be on.

Rod.

This topic has been touched on a few times here. I find your explananation a little difficult to follow but I think I agree with you.

Even if claiming depreciation does reduce your cost base for CGT purposes it’s only a 50% effect because of the CGT discount. So you may have to pay back 50% of your tax saving when you sell. And if you never sell…[Read more]

quote:everyone is on the bandwagon for positve cashflow properties

You get that impression if you read this forum a lot. However I went to a property investors meeting last week and found there was a very strong negative gearing attitude among most of those there. Most of the group had negatively geared properties and were actively looking for…[Read more]

Richmond,

Well done,

Wilandel,

Good to see some other Hawk supporters here.[8D]

Rod.

Centrelink use your taxable income and will make any adjustments accordingly.

In some cases there will also be an asset test.

Check with centrelink.

Rod.

Junior,

It’s worth doing anything (legal and ethical of course []) that gives you more knowledge and helps you along the way.

Only you can make it happen.

Rod.

My 2 bobs worth,

Changing trustee shouldn’t trigger a CGT event as the trustee only owns the assets “on behalf of the trust”. As there is no change in beneficial ownership there shouldn’t be CGT.

Rod.

Thats exactly what I was getting at Richmond,

Hey, my mob plays your lot this weekend – go Hawks. (That’ll probably get Westan started as well).

Not a bad part of the world you live at, I keep my plane just down the road at Wallan.

Rod.

Hobbies:

Family, Flying, Property, Photography, Reading.

Westan, you should know better! []

Those agents in Hamilton, Stawell and Horsham are going to get real busy now.

Rod.

I’m a telecommunications tech. Have been for about 20 yrs.

Hey JohnB, the message I got from Telstra (no I don’t work for them) yesterday was better – An SMS to say I’d won 2 tickets to a Rugby World Cup game.

Rod.

HG

I’ve never tried to do it, but my understanding is that super funds can’t borrow to invest. So unless you have enough in the fund to buy outright it’s probably not an option.

Rod.

AD’s right,

Kristine,

The protection side of the trust with a corporate trustee isn’t about protecting you from your liability if something goes wrong with the trust’s investments. You’re quite correct that if you are director you can be held responsible.

The protection is that if you are held liable for actions outside the trust (eg: you are…[Read more]

Hi hufnstuf,

Could you please explain this in non-accountant language? I think I know what you mean but I thought it was the chattel depreciation that wasn’t recouped.

Rod.

Sorry doogs,

You’re right.

I must learn to think before I type.

Rod.

quote:6:30pm
Room EN302
Swinburne University
Hawthorn Campus
John St
Hawthorn
http://www.swin.edu.au/cwis/maps/maps_hawthorn.htm

This is for the Melbourne meeting tonight at Swinburne.

Anyone planning on going?

Rod.

quote:But Rod, surely you end up with $71,353 in your bank account after all the dust has settled,

I don’t believe so.

My calcs are:
sale price ($322K) – purchase price ($230K) = $92K
subtracting costs ($14880) leaves $77120.
subtract tax (77120*0.5*0.485) leaves $58418
This is the amount which will end up in your bank account.
To get your…[Read more]

quote:The RE agent wrote the offer up for $55K with $50K going to the seller and $5K to me at settlement as per the annexure on the back of the contract. The bank sees $55K worth of property

Have you full disclosed to the bank what you are doing? For valuation figures banks usually take the lower of the valuation or the purchase price. This…[Read more]