Hi PropertyGuru

I just went to ATO web site then the legal database and searched for ID 2002/177. id2002/764 pops up as well. Suggest reading both. Thin capitalisation rules (ie the top end of town off shore tax planning stuff) was inadvertantly affecting mum & dad investors so the legislation was changed and from memory I think its capped at…[Read more]

Originally posted by raymondo:

My interest in doing this was killed by a NZ accountant who pointed out to me that I would not be able to offset taxation losses on any NZ IP against my Australian income. He quoted and forwarded a copy of ATO interpretive decision ID2002/177. This decision is quite black and white about this matter.

Raymondo,…[Read more]

Hi Lisa

Drop us an email, always happy to talk property.

Regards

Tony

Sensational, why didn’t I think of that.

Tony

Thanks Cilivia & Rugbyfan

Have plugged insurance into cf model & is OK. Its a bit like getting earthquake cover in Newcastle NSW.

My wife mentioned the NZ issue however these properties are in low flow backup waters in northern NSW country.

I was thinking on the lines of how do tenants go when the water is at the doorstep? Who moves them out…[Read more]

Simon

Yes after sale.

Regards

Tony

Email Darren at westaccounting@bigpond.com.au he is in South Perth or if you don’t “fit” his practice he can refer you.

Hope you enjoy the wild West.

Regards

Tony

Andrew

If a buy and hold, sounds like initial repairs and therefore not deductible but added to costbase.

If you are going to renovate and sell its treated as a normal tax deduction.

Cheers

Tony

Hi Everdine

You don’t steal in slow motion.

And if you miss it, don’t worry the deal of the decade does come every week.

Let us know of how you go.

Best of luck

Tony

I had a client purchase a warehouse there in 1996 after the pit closed. When he gave me his tax details I asked him for the loan contacts and told me “no the $1500 was the full purchase price….” It wasn’t rented then I wonder if it is still empty now especally as the rates were $2K p.a.

Cheers. Got to hop paying client waiting.

Tony

Risky

1)Demolish, then strata,(I quess you mean subdivide) then sell. The question is “am I carrying on an enterprise” and if yes how will I be taxed, looking at both income tax and GST? The ATO have lots of worked examples of these scenarios on the website.

2) demolish and then sell. Implying greater sale value as vacant land to a potential…[Read more]

Hi TeacherK6

Cost is deductible

We use and recommend clients to BMT

Also, no one has mentioned the sting in the tail when you come to sell the property and the tax treatment of Div 40 & Div 42 deductions.

Steve, at the Nov 03 Sydney reckons it’s recouped and not eligible for the 50% discount. Our tax advisers Hayes Knight reckon you “…[Read more]

Originally posted by TeacherK6:
Hello,

4) is the cost a tax deduction?

5) my accountant always claims some sort of deduction on the property i have for depreciation, will the QS do a better job at finding every cent that i can claim?

Anyone recomend a QS that they are happy with???

Hi troyid

I can recommend Steves “wealth guardian”. Brings you up to speed quickly & efficiently and I’m a CPA.

Cheers

Tony

Hi thefirstbruce

We are doing 3 now

2 x 4 bd project homes subdivide and sell to neg gear investors. We will lease them to Defence housing Authority to make them more attractive to the investor. It is hard to add value with these and to a certain extent the rising market will carry us – to profits.

2nd one is a subdivision of a corner block…[Read more]

Yack

Thanks. Will try vendor finance & if it goes south they can have it back in 5 yrs.

Regards

Crackles

The 6 yr rule you are refering to is when you are say transfered with work and rent out your PPR while renting at your new location. the PPR exemption will apply for 6 yrs.

I think what you are really asking is, “Am I carrying on an enterprise” If yes the ATO would seek to tax you on the sale(both income tax and GST,assuming the…[Read more]

Hi Nayes03

Deductions prior to commitment, (I guess you mean after settlement and prior to being available for rent?) Not deductible.

Why? Prior to the start of the income stream. And it’s not even included in the cost base on the eventual sale.

You can argue w/ the ATO but thats all you will have at the end of the day- an argument.

Best to…[Read more]

Hi Ronulas

Is $500 – $600 a year worth it? After 4 road trips in 60 days to NSW regional towns these are the same kind of numbers we come up with as well on $60K homes and one has been on the market for 3 years, (it’s in a getto).

We figure its God’s own numbers game and as Brett & Tiffany (MAP guys) put it so well at the Sydney Nov 03 seminar,…[Read more]

In NSW it pays to ensure the units are not classified as “low cost housing” as you may not be able to sell them for a number of years after doing the strata. Again ask the surveyor.

Cheers