accountant talking us out of trust

Has this site really gotten that bad?

Stupid comments and advertising everywhere!

What a poorly constructed site with very little value for true property investors.

Got to go now and ask a few people if they have seen any cash flow positive properties and then perhaps go to NZ and look for Steve and then follow him to the US. May take me sometime as it is hard to do with my eyes closed and my ears covered chanting “+CF rules, I know everything, expect where they are, +CF rules”

Bye

I also could not believe some of these comments. People like Dale GG and Michael Yardney are offering an alternative to thinking inside a box.

Like Dale said, not all situations apply to all people, it’s about time we stoped taking advice as gospel and start taking some RESPONSIBILITY for our actions.

If Dales advice does not suit your specific circumstances, just don’t use it!!! But please develop enough inteligence to work out whether it does or not without just blatantly blaming others for your own stupidity!!!

My appologies for the harshness, just can’t deal with victim mentalities, it makes me mad!

Dale, keep up the GREAT work mate, some of us don’t want to live inside a chicken coop!

Xenia Ioannou-Mena
Property Manager
Cash Flow Solution specialist
E: [email protected]
M. 0412 437 582

An Education in Income Tax Law

Point 1

Not all accountants, or tax practitioners, read and understand tax law the same way. That is why, for example, we see so many issues in tax law go to court for the judges to decide on what is right and what is wrong.

It is also interesting to note that it is not uncommon for court decisions on tax related matters to be split 3 in favour and 2 against…or vice versa.

So, if our legal system and the smartest and wisest people in the country cannot be absolutely certain how the tax law should be read, interpreted and applied, then….how can a simple accountant hope to be 100% right, all the time?

Clearly, they cannot.

All they can do is seek opinions from more learned people than themselves and study the law and the court decisions that apply to the law.

Point 2

If you ask an accountant…can I claim this, or that? The answer has to be a yes, or a no.

Accountants are taught and trained to be conservative and so they will often say no as a way of protecting their client.

However, if you ask an accountant “how can I claim this, or that?

Then you are assuming it can be done and the accountant will open his or her mind to find a way for that particular item to be claimed.

This is one of the most important tools an investor can develop.

Point 3

From the ATO Ruling Mt 2042

8. On the other hand, relatively inexpensive Christmas gifts of food or drink that will be consumed by the employees at home (such as a bottle of whiskey or wine or a hamper of food) are not regarded as being the provision of entertainment for the purposes of subsection 51AE(4). Expenditure incurred on such gifts will be treated as an allowable deduction in calculating the taxable income of the employer.

Point 4

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 1 – INTRODUCTION AND CORE PROVISIONS

PART 1-3 – CORE PROVISIONS

Division 8 – Deductions

TABLE OF SECTIONS
8-1 General deductions
8-5 Specific deductions
8-10 No double deductions

SECTION 8-1 General deductions

8-1(1) You can deduct from your assessable income any loss or outgoing to the extent that:
(a) it is incurred in gaining or producing your assessable income; or
(b) it is necessarily incurred in carrying on a *business for the purpose of gaining or producing your assessable income.
[
Note:
Division 35 prevents losses from non-commercial business activities that may contribute to a tax loss being offset against other assessable income.]
History
S 8-1(1) amended by No 90 of 2000, s 3 and Sch 1 item 1, by inserting the Note at the end, applicable to assessments for the 2000/01 and later income years.

8-1(2) However, you cannot deduct a loss or outgoing under this section to the extent that:
(a) it is a loss or outgoing of capital, or of a capital nature; or
(b) it is a loss or outgoing of a private or domestic nature; or
(c) it is incurred in relation to gaining or producing your *exempt income or your *non-assessable non-exempt income; or
(d) a provision of this Act prevents you from deducting it.
For a summary list of provisions about deductions, see section 12-5.
History
S 8-1(2) amended by No 66 of 2003, s 3 and Sch 3 item 57, by inserting “or your *non-assessable non-exempt income” for “*exempt income” in para (c), applicable to assessments for the 2003-04 income years and later income years.

8-1(3) A loss or outgoing that you can deduct under this section is called a general deduction.
For the effect of the GST in working out deductions, see Division 27.
[
Note:
If you receive an amount as insurance, indemnity or other recoupment of a loss or outgoing that you can deduct under this section, the amount may be included in your assessable income: see Subdivision 20-A. ]
History
S 8-1(3) amended by No 41 of 2005, s 3 and Sch 2 items 2 and 3, by substituting “Note” for “Note 1” in Note 1 and repealing Note 2, applicable to assessments for the first income year starting on or after 1 July 2005 and later income years. Note 2 formerly read:
“Note 2: A cash accounting regime applies for general deductions, and some other deductions, incurred by STS taxpayers: see Division 328. “
S 8-1(3) amended by No 78 of 2001, s 3 and Sch 2 items 3 and 4, by renaming the note as “Note 1” and inserting Note 2, applicable to assessments for the first income year starting after 30 June 2001, and for later income years.
S 8-1(3) amended by No 176 of 1999, s 3 and Sch 3 item 2, by inserting the reference to Division 27 at the end, effective 1 July 2000.
S 8-1(3) amended by No 16 of 1998.

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Time for me to do as many have done before and keep my knowledge to the Somersoft crew. Once someone starts attacking people in the profession I say goodbye. Good luck.

To be honest I think the moderators should have stepped in, most have a wealth of knowledge and experience..

I can only agree that nowdays I seem to be spending less and less time on this forum..nice for a visit but..

“Money is a currency, like electricity and it requires momentum to make it Effective”

Online Positive Cashflow and Renovating Calculators

Hi Lisa

I admire your passion and your desire to protect people. Both qualities are admirable and sadly, all too rare….especially in accountants.

I have many accountants approach me with a view to picking my brain as to what I think and why I think it….and, as a result of my admiration for your qualities, I am extend an invitation to you or your partners to do the same.

Free of charge, of course.

Dale

I’m Stunned. That’s all I have to say. The loss of CoastyMike is a true loss to this forum. I have read many of his posts in awe at his simple manner of explanation and truly aspire to write like him. Unfortunately I am unable to yet, but with practice…

Lisa, if you don’t wish for your copy of Dale’s book to be wasted I’ll buy it off you for $20.00.

That goes for everyone else on the forum who has decided it is rubbish. I know a couple of people to whom it would make an ideal present. I also love books (even the boring ones) and would hate to see it wasted or binned etc;

Dale, I haven’t read your book. I have heard many both on here and not speak highly of it and yourself. If Cata thinks you’re alright then that’s enough for me. He might be costing me my new motorcycle (which I don’t really need anyway) to set up my trust structures, but I’m sure when I’m claiming my sex toys (does that include german dvd’s too?) back from the ATO I’ll be more than happy with the expense incurred!

I am completely disenchanted with the posts on here. I must admit. I thought this was somewhere for EVERYONE to come and SHARE their KNOWLEDGE with others, and for EVERYONE to LEARN from OTHERS. For goodness sake what has the world come to? All we need now is a bomb and some terror and we will be no better off than those in an oppressed society.

If I offend some of you then GREAT!

Perhaps you need it.

Hey you don’t like the book don’t read the damned thing! If you don’t agree with someone’s opinion then DON’T READ IT! or simply say “I disagree because of ________(insert fact here)”

Anyone would think it is rocket science.

I have to go now before I really really go off.

The offer stands: if you don’t want your copy of the book I’ll pay $20 for it.

Stuart Milne
Non-Conforming Specialist
READY Mortgages
http://www.readymortgages.com.au
[email protected]
Mob: 0404 056 055

Hi,

I find it funny that people who jump to Dale’s defense here openly defame me on another forum site. Good old tall poppy syndrome.

Anyway, without any agenda, I have met, heard and chatted with Dale on several occasions. While I would regard some of his tax claims for personal expenses aggressive, he creates a reasonably arguable position. Ultimately, such claims are made under the Australian self-assessment tax system and so they will be honoured, until such time as they are tested (which may be never), in which case it is up to the lawyers to fight it out.

Like most advice (my own included) it’s up to you to take it or leave it.

Now, as for Dale as a person – never, not once, has his integrity been called into question with my dealings with him. This is a rare situation in the world of wealth creation, and speaks volumes for his professionalism and approach.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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