[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 8, 2003 - 6:54 am

Hi,

Heard an interesting quote on radio the other day. Derryn Hinch quoting from one of his mentors I think…

“News is something someone doesn’t want printed. The rest is just unpaid advertising.”

[?]

Oh, and in my dealings with TT, they have always been professional, if not a little rushed. I guess they just have to get a cross section of stories up every night that appeal to their mass target market – hence property followed by shampoo.

Steve McKnight

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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 5, 2003 - 7:56 am

Provided these CDs are free then no problems.

Pls confirm.

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 5, 2003 - 7:39 am

Hi,

This topic has been deleted.

References to share seminars need to be closely regualted due to licensing issues.

Crashy – be very, very, very careful here as the ASIC is coming down hard on people without the proper authority!

Also, mate, please don’t abuse this forum by making posts like that again. [!]

Steve McKnight

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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 4, 2003 - 9:14 am

Hi,

Check out their website http://www.personalinvestor.com.au/

Some of the articles are available for free!

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 4, 2003 - 9:00 am

Well, it just goes to show that a variety of opinions are always welcome here, provided they are expressed respectfully and pursuant to the forum rules.

Thanks for your contribution Pinky, and to all those who take the time to answer posts to help members with questions.

Cheers,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 4, 2003 - 8:54 am

Hi,

I need to be quick…

The reason why I don’t believe in the tax deduction side of investing is that it justifies a valid reason for making a loss or having -ve cashflow.

As for depreciation – see my thoughts at: https://www.propertyinvesting.com/depreciation

Depreciation is tax deferral, not a tax saving.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 2, 2003 - 6:49 am

Hi,

We are looking at bolting on a chat room at a later date, but it would only be open a selected times to discuss a particular topic so that it could be like a mini online seminar.

This may be some time though.

Bye,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 2, 2003 - 6:46 am

Hi,

My understanding is that the image was there after a modification to allow us to track people entering the site via google links.

As such, it is not advertising in nature – more reflective that we use their free technology. Kind of like the link to Snitz at the bottom of this forum.

Cheers,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 2, 2003 - 6:43 am

Hi,

I have made some enquiries about this but have come up with blanks everywhere [?]

Nivia… if you are out there pls get in touch. I’m starting to worry.

Bye,

Steve McKnight

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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 2, 2003 - 6:37 am

Alf,

Yes – I agree with you!

Building writeoff (now called capital works) comes off the cost base (ie. is not a balancing adjustment).

However, depreciation of fixtures and fittings does NOT come off the cost base. Instead, it is (usually) repaid if the property value appreciated rather than depreciated.

This point outlines the different tax treatment of the two types of depreciation deduction. See my earlier example to numerical clarification.

Cheers,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 10:42 am

Hi Fudge111,

Yep spot on.

Depreciation is tax deferral, not a tax saving.

They don’t tell you that at the free seminars []!

See ya,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 10:19 am

Hi Alf,

Don’t quote me on this (IE. This is NOT advice), but my understanding was that:

1. Fixture and fittings depreciation is 100% repayable (ie. outside the 50% exemption).

2. The building writeoff came off the cost base of the asset, and as such was OK re: capital gains purposes.

Quick example…

A. $100,000 property bought (nett) 7/2001
B. Depreciation b/w 7/01 and 6/03:

Fixtures and Fittings: $10,000
Building writeoff: $3,000

C. Property sold for (nett) $150,000 in 6/03
D. Tax calc:

1. Carrying value of the property is $87,000 ($100,000 – $10,000 – $3,000).

2. Taxable profit on sale therefore $63,000 ($150 – $87,000).

3. Of this taxable profit:

$10,000 is a balancing adjustment as it represents recouped depreciation (fully taxed at the taxpayers applicable marginal income tax rate)

$53,000 is a capital gain, of which 50% would be exempt and 50% taxed at the taxpayers applicable marginal income tax rate.

Ie: amount to be included in the tax return:

Balancing charge: $10,000

Included because the asset appreciated, rather then depreciated!

The only way to get around this is to individually itemise on the sale agreement what you’re buying and pay more for the land and less (ie. book value) for the depreciated chattles.

and

Capital Gain: $ 26,500

Hope this is clear enough… this should definitely be discussed with a qualified tax adviser.

Further Study

Balancing adjustments:http://www.ato.gov.au/individuals/content.asp?doc=/content/31610.htm&page=5#P402_36398

Capital Works
http://www.ato.gov.au/individuals/content.asp?doc=/content/31610.htm&page=7#P585_51465

Items affecting an assets cost base
http://www.ato.gov.au/individuals/content.asp?doc=/content/31610.htm&page=7#P689_60350

Specifically For You

quote:

---

Also if anyone knows if one claims say 2.5% building dep. on 100000 building cost.

[email protected]%=2500
30% tax rate=750

which figure does one use for the CGT the 2.5% or the 750 30% tax rate.

---

Your cost base would be reduced by $2,500.

quote:

---

The other question i have is if one sells in the financial year and makes a profit is that profit added to the say wages taxable income so one pays the higher tax rate.
eg.
taxable income 48000
profit 90000
CGT………? 30% or at 48.5% for calculation
is the tax worked out at 48000 that is 30% for CGT purposes or the higher tax rate of 48.5%

---

OK – I assume ‘profit’ here is CGT, yes?

If so, and it was an individual, then 50% of it would be exempt, so included in the tax return would be:

salary (?): $48,000
capital gain ($90k * 50%): $45,000
Taxable income: $93,000
Tax payable: $31,090 + medicare

Hope this has helped you understand the concept further.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 10:08 am

Hi,

I’d go to the intro seminar and read the book.

All you need is one good idea and you’ll never regret it.

But, having said that, I am cautious about some of his ideas as he factors depreciation into the +ve cashflow equation.

Still, enough friends have said good things to make me happy to recommend that it would be worthwhile attending the intro seminar and reading his book.

Of course, go in with your eyes open… the intro night will include a sell to a multi-day, multi-thousand dollar seminar. This is OK… so long as the event is more than just a sales pitch.

If you go… report back on how you think it was and whether others should attend.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 9:30 am

Hi,

Interesting post… let me know if you give it a go and whether or not it keeps that hungry ants away.

There is a termite association (no kidding – Australian Environmental Pest Managers Association)

quote:

---

Australian Environmental Pest Managers Association Ltd represents professional pest managers and promotes the interests of the professional pest management industry.

---

Website: http://www.aepma.com.au/

Perhaps a call (1800 252 772) to these guys to see what they think might be worth it.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 9:20 am

Hi,

Well, my 2cents worth is that positive cashflow is positive cashflow.

So long that:

1. This investment fits into your wealth creation plan

2. You have done a thorough due diligence (there are some excellent points made to help you)

3. You are aware of the risks and rewards

Then IMHO, $80,000 doesn’t seem like a lot to get into the property market to me, and you should be earning cashflow (based on what you have written here).

The point about finance has legs… be sure to add a ‘subject to finance’ clause when signing the contract.

Sincerely,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 9:13 am

Hi,

Here’s something perhaps out of left field… pls don’t take it personally []

I suggest that a large part of your problem seems to be that you wait until tax time to get all your reports together.

You’d be better served allocating an hour a month to keeping the records in order, perhaps on something like MYOB and the just running off summary sheets for tax purposes.

Sometimes electronic record keeping is more effort than the old yet simple paper trail anyway.

No matter how efficient the software, responsibility for using it and retaining control remains with the investor.

Anyway, just another angle to think about the issue, if appropriate.

Good luck!

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 9:07 am

Excellent and sensible point Dino.

Cheers,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 4:56 am

Hi,

Hmmmmm… I sense this is dangerous ground, but oh well.

The Bible is clear that you cannot serve two masters, and that you must choose between serving God and serving money.

Having said that, my understanding is that financial freedom is a great goal, provided that you keep God as the #1 priority.

It is certainly no sin to be rich, so long as you remain humble before God and mindful that it is He who blesses you.

This is a work in progress for me, and might actually one day turn into another book.

Clifford, if you want to get in touch, send an e-mail to [email protected]

Cheers,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 4:51 am

Hi,

Actually, just went through the 50,000 book sales mark.

Who would have thought???

Oh, and Arty, your Maths is way, way off on the estimated profit. Trust me, the author is last in line when dividing up the spoils! []

Unless, of course, you can negotiate a huge advance…

Cheers!

Steve McKnight

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**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

November 1, 2003 - 4:45 am

Hi,

I’ve enjoyed reading this thread.

I used to lecture auditing at RMIT, a university here in Melbourne. As I was (and still am!) a registered company auditior, I was well qualified to take the topic.

Anyway, I took the part-time class, which was full of people who worked during the day and were studying at night. I’d regularly get up to lecture, only to be sidetracked and move on to the topic of application of the theory in an audit, business and investing context.

I quickly became disillusioned when the vast majority of students just wanted to know what was one the exam, and then to get home asap.

In fact, that’s the reason I stopped lecturing, I only wanted to teach people with ears to listen!

Lesson to me: you can’t keep everyone happy all of the time, no matter how hard you try.

Lesson to me: put a price on information that means that people have to respect it. What you sell it for is the value that you attribute it to!

Lesson to you: it’s not theory alone, but the application of the theory that will be the essence of your success.

Oh, and, if you pay peanuts, you’ll be buying from a monkey!

[:0)]

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently