Forum Replies Created
Hi Rugbyfan
Thanks for the link. I have looked at your post and the links and they are very useful. Did you pay the stamp duty proportionately in each state – ie if your total loan was say $400k did you pay stmp duty on $400k in QLd and on $400k in WA?
This is what happened to us. Our LOC is $320k on PPOR and $180k on QLD IP. We paid stamp duty on $500k in SA and $500K in QLD. Now we need to get a refund.
I think Mortgage brokers should disclose these costs as part of recommending a certain loan structure.
Thanks again – this forum is a fantastic for learning.
Spot
Hi Derek
Thanks for the response. I do actually mean the mortgage stamp duty not the property stamp duty. Like you, I was also under the impression that the mortgage stamp duty was determined by the state the mortgage origninated in. The bank advises me that mortgage stamp duty is determined by the state the security for the loan is held in. I rang the stamp duty office in QLD and they advised me that the bank should have apportioned the stamp duty according to the amount of the loan relating to the QLD property and the amount of the loan relating to the SA property. This makes more sense.
However when I asked the bank why the second purchase in NT resulted in stamp duty payable to QLD they advised me that it was because the QLD property is part of the security for the entire loan and that every time I increase the credit limit then stamp duty is payable in each state. This is regardless of the fact that the QLD property is at its maximum equity (ie 80% of the value).
SpotBlackjack
Are you willing to name this bad PM or is that against forum etiquette? If you can name them it may save someone else the hassles you have had. The problem with Darwin is that so many people think that they don’t need to provide any level of service.
AM
Hi Melbear
What do you mean the law has been changed? The law does not define the specific items that can or can’t be depreciated. That is determined by the policy of the ATO. If there has been a change in policy I am curious when this occured because I was looking at the 2002 Rental Guideline and it was not allowed back then. I remember that the article said there had been a change, but I don’t know that that is correct.
Just curious if you know when the change occurred and where you got that information from.Thanks
AMSHi
Quantity surveyors are experts at determining the cost of construction and of various items of plant and equipment within the building. They are not however experts at interpretation and application of the tax law. This was blatantly obvious in a Property Investor article last year written by the manager of a QS firm in which he was unhappy that the ATO had not allowed deductions for various items such as Kitchen cupboards. If he took the time to read the ATO rental property guidelines it clearly states that kitchen cupboards along with a list of other items form part of the capital asset and therefore cannot be depreciated in their own right. Someone who is claiming to be an expert in the field of tax law should at least read the basic guidelines. You should ensure that you take your QS report to a knowledgeable accountant who can go through it and ensure that you are not claiming items which are specifically disallowed in the rental properties publication. Don’t forget if you are subject to an audit by the ATO it is YOU who will pay the penalty for incorrect claims NOT your accountant or your Quantity surveyor.
AMS
