Thanks Terry, in contrast to my original post i need to make a slight change, actually they have been told that the sellar has signed the contract, the agent has told them this verbally but they havent actually seen a copy due to ‘issues with dates’ or some technical excuse given.

So i will rewrite my original question, if they have a SIGNED…[Read more]

https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/Rental-properties-2016.pdf

Rental property guide from the ATO website, dont forget to get yourself a depreciation report aswell.

Yes but the specifics/provisions to do so should be set out in the Deed, it could also be a big administrative hassle as all assets will need to be re-registered in the name of the new trustee, it would be highly recommended to have the company already set up as trustee before undertaking any activity

You will absolutely need to disclose the the sale in your tax return, you have realised the sale of a CGT asset, a gain/loss position is irrelevant.

Well it depends on the nature of your operations, but the first point of order is that company’s do not receive the 50% CGT discount, so for a long term property investor it would not be advisable.

I don’t understand why you think this would be taxable?

To be frank, I wouldn’t be going into an SMSF unless you are very comfortable with the superannuation laws, your obligations and generating your own returns.

Look for another financial advisor.

Yes that’s exactly what you can do, so for example; if you buy a house for for $300k and sell for $200k you will have a carry forward capital loss of $100k. Now in the future if you buy another house for let’s say $400k and sell it later on for $600k (and owned it for over 12 months) You would have a Net Capital Gain of $50k (600k – 400k – 100k…[Read more]

Well I’m not sure exactly what you mean by ‘site cost’ but the short answer is no, the site costs will be added to the cost base of your property. Any costs associated with constructing a capital asset are capital costs, and form the cost base.

There will not be any claim, the remaining items are deducted from the sale price of the house upon sale, and the items are ‘disposed’ of in your tax return at their written down value.

I dont see why not, certainly from an Australian perspective. The only possible issue I can see is with regards to tax laws in the United States, how is it taxed over there? Can foreign entities own property in the U.S?

Certainly an interesting question,I would be interested to see what others have to say on this.

I dont see why not, certainly from an Australian perspective. The only possible issue I can see is with regards to tax laws in the United States, how is it taxed over there? Can foreign entities own property in the U.S?

Certainly an interesting quesrtion,I would be interested to see what others have to say on this.

I think you would be in trouble under strategy 1 when it comes to the main residence exemption, as it looks to me like purely being a profit making scheme.

Strategy 2 – you will still need to ‘move in’ to the property first just making that clear, there are no hard and fast rules regarding how long and the necessary evidence required, the post…[Read more]

Surely you wouldn’t want to hold property in a Trust if they are negatively geared ?

Yep watch out for this, subdivision can give rise to GST as its seen as a commercial transaction, and I can’t see how you would receive the 50% discount either.

Yes it can be deducted, but only as Capital works at 2.5% as it forms part of the land and will be added back to the selling price upon sale.

In my experience ‘repairing’ of lawn doesnt occur, I’ve only ever seen people laying new lawn, and so as a new item that forms part of the land it will be depreciated at 2.5% and added back on sale, I…[Read more]

Terryw wrote:
Do you own your parent's property?

Exactly, they own it not you (i would presume) it's their PPOR not yours.

The exemption would apply.

No your cost base is 200k

and CGT will be apportioned between the time it was rented and lived in, basically if you rented it 25% of the time and lived in it 75% of the time, then only 25% of the CGT  should be assessable.

You have to ask yourself if what you are doing is worth it if you are wanting to sell it in the short-term anyway. You can…[Read more]

Well everything you say is why I was originally interested, I live here and am well aware of everything that is happening construction wise, there is ALOT of overhauling and new infrastructure being built, the abundance of apartments is definitely an issue but in terms of houses I'm not sure where the market is at.

Brisbane, I like it, but nearly…[Read more]