Forum Replies Created
Top post Jim.
The best I have seen so far.
Just one thing I want to add, if anyone has a self managed super fund, the Telstra buy back is ideal. Free capital loss plus refund of excess imputation credits as the fund is taxed at 15%.
My super fund will be selling it’s shares as part of the buyback.
Cheers
John
[email protected]Ok Steve, but if the entity in CONTROL of the unit trust is deemed to be a related party of a member of the fund, you will breach the rules.
I would not want a non related party in control of my unit trust.
Cheers
John
[email protected]Hi All
Be careful with Self Managed Super Funds.
Steve suggested using a unit trust for the superfund to invest in, then the unit trust can borrow to fund investments.
This is not correct. New rules were introduced to stop superfunds doing this. Sure Steve may have a unit trust setup before the new rules, therefore they don not apply to him.
If you setup a unit trust now owned by a superfund, you are not allowed to gear up any investments within the trusts.
Super funds are very complicated, and suggest anyone interested to speak to a Chartered Accountant or CPA.
John
[email protected]Hi Luckyone
The legislation regarding PPOR cleary states you must live in the house before renting it out. It doesn’t specify a time frame that you need to stay in it.
If you own more then one property, you can choose which one is your primary place of residence, however I suggest you would need to have lived in it first.
Once you have lived in it you can then treat it as a normal rental property, claiming all interest and other deductions.
If the property was not available for rent, no deductions are allowable. The interest, rates etc will then be used to reduce your capital gains.
Cheers
John
Hi All
If you rent your PPOR you are missing out on a top tax free investment.
If you don’t want to purchase your PPOR, I would recommend you buy a property you want to rent out as an investment, live in it for a while, say 6 months, then rent it out and move into a rental property of your choice.
The effect of doing this is that your investment property will be not be subject to CGT for 6 years.
Cheers
Hi Angelus
You can enter into a joint venture in your personal name or setup a company as the joint venture vehicle.
If you are looking for tax write off’s, the joint venture agreement should be in your personal name as any tax losses are likely to be trapped within a company. Also, any capital gains on the property are taxed at a reduced rate in your personal name.
I would rarely recommend holding assets within a company structure.
Cheers
John
Hi Ernest
Even with a positive cashflow property, there are other non cash expenses such as depreciation and capital write offs which will reduce your taxable income.
If you do have tax to pay, and lodge your return through a tax agent, you should have until May the following year to pay your tax debt. The ATO will then send you quarterly IAS forms with a quarterly instalment to be paid.
Cheers
