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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 contract by both parties, can the agent still conduct opens??
There apppears little doubt in my mind that the agent has deceived them, he had told them the contract is signed, but they havent seen it themselves and is still conducting appointments (without their knowledge), after learning that the buyer does not want to sell their own home through this agent, he has literally gone missing in action/extremely slow to reply to messages/not answering phones.
You might ask how we know he is still conducting opens? We contacted him via a different number as another buyer to which he replied its available and scheduled a time for viewing …
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.
Hi IvanCan I use my personal name(i.e. as individual) as trustee for the time being while I get a company set up and then switch trustees later from my personal name to that of my newly formed company?CheersNathan
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 <-CFL x 50%).
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.
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This reply was modified 9 years, 6 months ago by
tanner892.
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 above would be a pretty accurate representation of the evidence though.
Surely you wouldn’t want to hold property in a Trust if they are negatively geared ?
prob not. many issues involved. GST?
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.
Now I’m confused re deductibility.
If I replace dead lawn, it’s a replacement, is it deductible ?
If I repair dead lawn, it’s a repair, is it deductible ?
Some outside items must be deductible surely, like fencing, retaining walls, paths ?
Where the outside appearance and street appeal is vital for the business like in a motel, is any money spent on landscaping for that reason likely to be deductible rather than adding to cost base ?
We lost heaps of lawn Jan 2013 with the heatwave in Wagga, took ages of crawling around on the lawn to fix/replace it.
Any clarification would help me and maybe others.
Cheers
thecrestYes 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 can’t see a situation where one would ‘repair’ dead lawn, but I am not an expert, if you were to tell your Accountant that it is in fact a repair then it would be fully deductible.
And yes outside items like fencing and retaining walls are deductible…at 2.5% (capital works) and the depreciation claimed is added back to the selling price upon sale.
However, a ‘repair’ to lets say a retaining wall that is leaning over or damaged is fully deductible.
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 sell now, claim main residence exemption and pay no tax, or rent it for a year, sell it and then be subject to CGT.
And the 6 year rule can only apply to ONE property/your PPOR, so you could use it and apply the exemption but keep in mind that you will lose a portion of your main residence exemption on the new property that you are then going to movie into.
Basically, cant own 2 properties and sell at different times and claim 100% main residence exemption for both, one of them has to lose out. Since you are at a 200k gain on your first one, the decision would be obvious at this point in time.
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 everywhere seems flood prone so it scares me at the moment. I appreciate your input, the Gold Coast seems to have all the right fundamentals, cant help but think that things could be drastically different in the not to distant future if the world economy starts to recover, seems like this downturn has been going on for decades.
The Gold Coast does however seem purely like a tourist attraction, where are all the jobs here? It seems to lack commercial property and high paying jobs with the place being flooded in apartments for those with short term plans, can it ever really take off like this?
Yeah I've heard good things about occupancy there near UQ and it has great infrastructure and transport in the area, I think there was some flooding there but nothing significant? I wasn't actually in Qld during the floods so I'm unaware of where and how bad certain areas were affected but doing plenty of research! it seems like alot of southern suburbs were badly affected. In saying that I've looked at Toowong's RP Data report, with house and unit prices remaining fairly steady even after the GFC in comparison with everywhere else.
From what I can see it seems like $350,000 should be able to get you a decent but not a great 2 bedroom unit in the area.
Yeah that's some good advice, in my opinion it seems like they are undervalued in alot of suburbs primarily due to them being situated in flood zones, I doubt you can even get insurance in these places.
My only question is if buying near Universities where its very possible to have tenants primariy of Uni students, are things like garages or parking spaces even overly desirable? Or is it more of a situational thing and depends on the tenant?
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This reply was modified 9 years, 6 months ago by
