Martin,Even though it is added back to increase your capital gain by the same amount, your capital gain can be reduced by the 50% discount.  So, you get the full effect of the tax deduction at your marginal tax rate when you claim the depreciation, but upon capital gain, you only pay tax at 1/2 your marginal tax rate.  Plus, the cashflow benefit o…[Read more]

Hi,You can get your employer to pay for the costs of relocating as part of your salary package. It is a tax deduction to them, and is also an exempt fringe benefit. So you can get an indirect benefit of the tax deduction.

Fortunately, no you don't.Residential rental income is input taxed and so you don't need to register for GST at any stage, and GST can't be claimed or paid on residential rent or related expenses.Hope this helps.Ross

It does seem expensive, but when it comes down to it they can charge whatever they like, but whether or not you return next year it's up to you.   Many larger firms won't spell it out in black and white, but they are not interested in smaller clients and so charge as much as they can get away with, and if the client leaves then they are not too fu…[Read more]

In general I would say that is on the high side, usually between $600-$1500, but it depends on a few things.  Most accountants charge on an hourly rate so if you know how much their hourly rate is then you can see how long they are saying it took.   Did they do your individual tax returns as well (how many), what type of record keeping did you pro…[Read more]

ROI = Return on Investment, expressed as a percentage.For example, if you invest $100,000 and it earns $8,000 per annum, then the ROI is 8%.Now, there will be differences in whether or not you are using just the amount that you invest, or the cost of the overall investment, ie; if you borrow, then your investment is less than the cost of the…[Read more]

Sure can, get a QS report done and you're right to go

Hi Carol Anne,A new trust is unlikely to protect your current assets from any legal action, but probably a smart idea for any future investments.  This is not to be taken as legal advice but my limited opinion.  You should really get a legal opinion for some certainty.regardsRoss

Mark, You need to be able to make a reasonable valuation, so either getting the actual selling prices of similar properties in the area sold at around that time as evidence, or a quantity surveyor may be able to help with the valuation.   They are qualified to make an informed valuation.   Also, as Elkam has alluded to, you may be able to use the…[Read more]

Is the ACT house your PPOR?  If so then you would be looking at CGT on the Ipswich property being; selling price net of selling costs, less the market value of the property when it started producing income. Less 50% CGT discount.   This amount, if a net capital gain, is added to your taxable income.   If a loss, is offset against other capita…[Read more]

Hi Greg,Glad to try and shed some light on your situation.   As you've said, if the property was developed/sub divided then you would probably be regarded as in the business of property development.   Thus you would be required to register for GST, assuming you exceed the $75,000 turnover threshold.   As you would be registered for GST, you would…[Read more]

Is the trust actually carrying on a business? Or merely investing in real estate?  In which case the GST on expenditure is related to input taxed supplies and so it cannot be claimed back.   If the trust is carrying on a business of developing property then there probably will be GST on the sale of the property, or at least the margin.  Be ver…[Read more]

Hi Bundy, Why is your trust registered for GST if it is just a passive investor, ie; rental investment?  Passive investors aren't required to register for GST, unless the rent is commercial and your annual rent is at least $75,000, not including GST.   Not being registered is usually better because you won't have to pay 10% of your income to th…[Read more]

Hi cqblove,Another important thing to consider before buying anything is the structure that you use to own your investments.  This will be a vital part of your plan, to not only reduce your tax but more importantly to protect your investments.   With the expected tax cuts, again, the tax benefit of negative gearing is continually being erod…[Read more]

Some really good points there Terry.  The unit trust arrangement will definitely be the most tax effective and flexible.   As has been noted the main thing that needs to be sorted, is the decision making and dispute resolution process, which is likely with such a large group, and a tie breaker needs to be decided upon with an even number of equ…[Read more]

A company or corporation (same thing) means that it has been incorporated or brought into legal being by statute.   A company is a seperate legal entity.

First things first…why are you holding business & investment assets in the same trust?  Potentially exposing your investments to business risk and compromising the asset protection advantages of the trust?Secondly, you can offset the trading loss against the capital gain.

Yes, it's a very tricky and unfair situation, but that's the ATO.  Although I haven't personally seen them put this into practice you need to be aware of the fact.

Even though your hubby will get the better tax breaks now, he will also be taxed on the capital gain (although only 50%) at his tax rate.Consider doing a cashflow projection over the term of the investment (5 yrs?) on 3 scenarios.  1. Hubby owns 100%2. You own 100%3. You both own 50%This will give you an idea on the difference between the o…[Read more]

The building write off of 2.5% per year reduces the cost base of the property, whether or not you have claimed the write off.  This is assuming the property is a post 13 May 1997 purchase.   There are circumstances where this does not have to occur if it is reasonable and out of your control that you cannot establish the building cost.   When the…[Read more]