Let’s say one couldn’t settle for an IP at settlement day due to one or other reason. Deposit bond taken and made a lost of say $20,000 (including Solicitor’s cost etc.).
No income from this IP yet!Question, could the lost be claimed as tax deduction from other future IP business?
Any Accountants in the Forum?Thanks in advance!
Prop
In a word “Yes”
Conversely the same would happen if you had sold the property and received $20,000 deposit. On the day of settlement the purchaser was unable to perform and you terminated and took action for Specific Performance.
Your deposit would be taxed as income and if you were registered for GST and the transaction had GCT payable on it then 1/11 of the $20,000 would paid in GST.
Cheers Richard
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http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Thanks!
My accountant told me that it’s not unless I sold an IP in the future. Then it will be deducted from the CG.[?]
What do you think Rich?G’day Benny…
I think your accountant may be wrong. As you initially went into the deal to earn income, not only is the loss incurred tax deductible ,but should/could be offset against income in the same or future years.
Cheers
Bill
Bill O’Mara
Real Estate,Mortgages, Option Writing & Forex. [email protected]Hi Prop16, any losses that are made can be carried over to your tax return. The loss is rolled forward and your taxable threshold will decrease. You will be taxed at a new income at a new threshold because of your loss has been carried forward.
Ok i hope that made sense.
Think of a loss as a negative geared property were, your taxable income has been reduce, and is now going to be taxed at a new income taxable threshold.
cheers
S.I.S
Hi Bill,
that’s what I thought. I see the whole thing as one PI business although it’s not a company as such.
Looks like I’ve to look for another Accountant?
Any other opinion guys?
Thanks in advance!Thanks sis.
She argued that the IP did not produced an income yet. No income no tax deduction!???Hi Prop16,
no income as yet, is equal to a loss, infact at this current moment you would call that property a negative geared one.
i suggest get a new accountant. where abouts are you from Prop16, i maybe able to assit you in finding an excellent account, who mainly deals in the accounting side of properties investments.
cheers
S.I.SI’m in Brisbane SIS, the one day beautiful perfect the next state[
] Just kidding.
Thanks in advance for your assist.Hi Prop16, the accountant name is Will Fraser, im having trouble finding his contact details, but if you are near Redcliffe, His Accounting firm is at Margate (a suburb in Redcliffe) across from the Woolworths entrance and exit of the carpark there.
Excellent guy to talk to. And he specialiese more in IP in his accounting firm.
Cheers
S.I.Sif i do find his number i will put it up here for you.
Thanks SIS and don’t worry about his contact details. I’ll find it in the Yellow Pages as long as I know his name.
It’s quite a distance from my place, about an hour drive. In fact I went fishing at Woody Point, Redcliff last weekend and drove through Margate to Scarborough.Cheers!
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