The plan was to buy the land for a holiday home as a long term project. Its in Vic near the ski fields about 3-4 hr drive from Melbourne. So over the next few years put a shed up or a caravan and camp there. Then over time put a kit home there – then when the kids are older a pool or tennis court. You get the picture – our vision over the long term.
As I don’t like non deductible debt I was thinking about strategies to make this purchase more palatable. I could sell an investment property and transfer the equity into this new property. But I am not too keen to pay the Tax Man any Capital Gains tax and would prefer to keep it.
Then I thought why don’t I put a few acres (anywhere between 5-10 acres) of Olive trees and become a primary producer. Even let the wife grow lavender and sell it. That way I can claim all my expenses of development, interest etc.
Has anyone done this? Any advice welcome – I am in my early stages of validating/researching this.
Hi Yack
TIP-Have a chat to your accountant and even depreciatior [upsidedown]
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI would have to do some research, but the trees should be depreciable if it is a genuine commercial venture. Grape vines (and their trellises) are, too. From memory mango trees, for example, have a 20 year ATO determined effective life.
Also, in 1999 (the Ralph Revue?) fences on properties were made an item of ‘Plant’ i.e. a Depreciating Asset. We did a schedule recently on a farm near Walcha and there was heaps of depreciation in the fences. I might dig out the schedule on Tuesday and post the amount if anybody is curious. There are farmers out there sitting on thousands of dollars in available depreciation and neither they nor their accountants realise it. Sigh.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.auThanks depreciator, there’s merit to Yacks idea…
I like it [biggrin]
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorNot to sound negative about your idea because it is certainly thinking outside the square….but do you know if olives could be grown successfully in this area taking into consideration the climate and soil etc ? Just a thought…
My olive trees are approx 5 years old and still growing. Have not had a useable crop yet but they don’t take much looking after. Don’t expect any early rewards from olives.
Cheers
JeffHi Cash Flow..is it the climate where you live that it’s taken so long to bear fruit?
Was looking at olives in OZ.. and found this info..
The olive originated in the Mediterranean region and will grow well in areas of Australia with a similar climate—cool, wet winters and warm, dry summers. They will produce in other areas as long as they have the correct chilling requirement (winter temperatures fluctuating between 1.5°C and 18°C) and summers long and warm enough to ripen the fruit. The trees can suffer severe damage at temperatures less than –5°C. Hot, dry winds or rain at pollination in late spring can reduce fruit set. As well, significant rain at harvest-time can reduce the extractability of oil from the fruit due to the higher water content in the fruit. This appears to be particularly problematic for fruit normally grown for table olive production, such as manzanillo.
The shaded areas on the map show regions in Australia with similar climatic regimes to traditional olive growing areas in Europe. There are other areas not indicated on the map where olives are grown successfully. However, long-term economic viability is yet to be determined. Recent results from the National Olive Variety Assessment Project, funded by RIRDC, show that olives grown the cooler more southerly latitudes in Australia, produce higher levels of oleic acid in the oil, a positive characteristic, than olives grown in the more northerly latitudes of Australia.
I’m thinking that with most fruiting trees different climates suit them best and the fruiting seasons would differ slightly as with Mangoes- Darwin gets fruit to market first then the season moves slowly south until it gets to cold..
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI have a mature olive tree in my garden in SE Qld. Fruiting seems to be, a great season followed by a season of no olives at all. Has been fairly dry here for some time, although the tree itself seems to be healthy enough.
The fruit tastes absolutey discusting straight from the tree. I mean, really, really bad.
Is there some Italian recipe to change the taste to something like the olives on Pizza’s? I love the taste of those one’s.
Cheers Brenda.
If you want to get out of a hole, first stop digging.
You can’t eat raw olives, the tanins are waaaaay too high. That’s why you only ever find pickled olives.
To make them edible you need to soak them in water and salt for a long time. Search the net for recipes. But they are certainly not a fruit to eat fresh from the tree [ohno]
I have Greek next door neighbour who gives us food in exchange for me fixing things around her house (her husband, Zoy, isn’t very handy). She gets olives from another local Greek, makes cuts in the side (that’s Zoy’s job), then soaks them in jars with salty water for about 6 months. Then she rinses them in lots of fresh water (to get rid of the salt) and puts them in oil + herbs.
ScottTax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.auThanks for your post Redwing,
I’m in Tauranga, New Zealand – the climate is supposed to be okay for olives but would need to do some major planting to make it commercially viable. The land value here is too expensive to justify it. The big thing at the moment is Avocados but they take a lot more looking after.
We’ll get a crop this year but probably only enough for some boutique production. This will of course depend on the quality.
Cheers
JeffIs anyone looking at or has any knowledge of aqua-culture? I would be also interested in hearing depreciation possibilities in this area.
Robert Bou-Hamdan
Mortgage AdviserMA
Contact Fisheries Department-For a ton of Information.CSIRO also will have data
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorAll this ideas are good. Olives grow almost anywhere it is a matter of choosing the appropriate variety, a fish-farm is good too but unlike a few trees planted and left to grow, it is a capital and labour intensive industry, think several hundred of thousands just to get started.
You can add to this greenhouse production and other ideas.However your considerations at this stage are not what can be done to appear a business but rather will the tax man fall for this. The answer is probably not. There are rules about hobby farms and when do they stop being a hobby. Better ask an accountant that is knowledgeable in this fields, and no, not all are.
“What you want in your life occasionally shows up…
what you must have… always does.” . . . . . Doug Firebaugh
May God Prosper you.[biggrin]
MarcThanks red… will do.
Robert Bou-Hamdan
Mortgage AdviserMA
Just found out a friend knows someone who has an established aquaculture business in Exmouth, let me know if you want me to chase additional info for you.
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow Calculator
You must be logged in to reply to this topic. If you don't have an account, you can register here.
