All Topics / Legal & Accounting / Some Tax Questions
Hi everyone,
Just signed up today, i’ll give you my situation, and some questions.I purchased my first house 1 year ago, that i am currently residing in. (which i have to do for my first home buyers grant) I am living with a mate, who is paying some board. Just under the table so to speak at the moment.
I was talkin to a mate at work who was saying that if i was to put the income on next years tax that i could do a few things: 1 was to say that i am getting a percentage of rent, like say i’m gettting $50 a week, but fill in my tax return saying that i’m getting $20 a week. He was of the viewpoint that this would work for depreciation and that a percentage of my interest being paid from my loan would be able to be claimed. (last year i paid nearly $9000 interest)
Before i moved into my house, i was living with my grandfather, who is still in the house, my mate also said that i could say that i was just solely renting out my house, and say that i was back living at my old address. To get more tax cuts. I realise that this isn’t being entirely honest, and i’m not too clued up on the whole tax thing through investment properties, as i haven’t needed to look into it yet. But do either of these ideas/ways sound worth doing? Too risky? Could it come back to bite me in the bum in the future?
Or would it just be entirely better to just keep my $50 a week rent under the table and not bother about tax deductions.
Any advice on the tax thing would be appreciated, or any things that i could do in my situation?Thanks
Start off investing based on fraud and you will end up doing worse things.
If you do claim depreciation etc you will lose your CGT exemption which is worth more than a few bucks a week.
i suggest you just listen to mates who are where you want to be investment wise. Who will take the fall when the ATO seek penalties from you or lay criminal charges? bet your mate wont be by your side then.
Stay upright and within the law – there is plenty of money to be made legally plus you don’t need to compromise your integrity to do it.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
HI
I think you should start off on the right foot, if you want a future in real estate investing. Find a good accountant to help you get started. Look in the phone book or contact one in your local area.Tell the accountant your situation and get some good advice. Don’t forget to write down any pressing questions and take them to the first meeting with you.
I think the fees are tax deductible, so that may help you.
Best of luck
Jules[angel]JULES1
Email MeHi Balniks,
I believe you need to rethink your ‘adviser’ what he/she is advocating is tax avoidance which is illegal – sure minimise your tax but don’t avoid it.
There are sufficient legal avenues available to most tax payers which enable them to minimise their tax without havng to resort to the strategies your ‘advisor’ is advocating.
Start clean and the journey will be productive.
Derek
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http://www.mononpoly.tic.com.au
0409 882 958
Skype – derekjones2113If you rent part of your house while living in it, then you will lose the capital gain exemption. You will have able to claim a bit more, but it could cost you dearly in the end.
However, if you were renting out your whole property while not living in it, you could still claim everything and get the CGT exemption as well if you go about it the right way.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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