If the payment is for payment of services or “personal exertion” and you are an Australian Resident for tax purposes then you are assessed on income from all sources (regardless of where the income is earned). You should consult a good accountant and determine whether the income is covered by Australian taw laws.

Let’s assume that it…[Read more]

http://www.ag.gov.au/www/ministerruddockhome.nsf/Web+Pages/7F3FC7CDB6C1374ACA256EDA00026EC1?OpenDocument

I trust that you are being facetious. The bestest buddy ever is something I would sign for charity but “who i couldnt have gotten where i am without your help”. Well unless this is true there is no way I would be signing such a clause. I don’t know if you realise but making such a statement and signing it would legally enable you to…[Read more]

More than happy for my book to go to Auction as well with the proceeds to the Smith Family. They do a wonderful job. Sounds like a good idea.

Ive had to change my clients figures so many times I’m just used to it. Seriously though congrats WrapAttack.

I agree that -1,505 is technically the correct answer but that wasn’t an option. So like all good accountants I just played with the variable I figured was incorrect.

I do think the person that said -1,505 should get…[Read more]

Initial Purchase Price 400,000.00

Plus : Closing Costs 20,000.00
Plus : Selling Costs @ 2.5% 10,950.00

Cost Base of Asset for Tax Purposes 430,950.00

Sales Proceeds 438,000.00

Capital Gain 7,050.00
Note : Not subject to 50% CGT
Discount as held for less than
12 months

Less : Cost of Property for 12…[Read more]

The changes to the Bankruptcy Laws are frightening. Did you read Brett Davies Lawyers recent newsletter ?

This is for those that are interested.

There is a very naughty business called Casualife Furniture run by the Guss family. It builds up lots of ATO debt. They then voluntarily wind up their insolvent company. Not to worry. They just…[Read more]

I have expanded my response. I am not quite sure what you mean when you say you paid it ? Are you saying that you paid the stamp duty when you transferred the share ?

A few issues:-

1. Although the company tax rate is 30% and any capital gains are assessed at that rate companies are also not entitled to the 50% CGT discount. Trusts are entitled to the 50% CGT discount. This could have a significant tax impact. For example if you had a capital gain (after allowing for incidental costs,etc) of…[Read more]

Certainly not claiming you are evading tax but just a warning for those that think they can understate their tax or commit fraud or evasion and get away with it. Those days are coming to an end.

And if the Tax Office does find that you have committed fraud they can refer it to the appropriate authorities e.g. Police, Centrelink, etc and…[Read more]

Remember an administrative penalty of 20 penalty units ($2,200) applies if a taxpayer fails to provide ALL reasonable facilities to a taxation officer who is authorised by taxation law to have access to places, premises, books and other information (TAA Sch 1 sec 288-35 ). These…[Read more]

I would seek a private ruling from the ATO on this one.

You may be caught out under a few provisions:-

-the period of interest outgoings before the derivation of relevant assessable income is not so long that the necessary connection between outgoings and assessable income is lost;

(The ATO may consider 2 years to be too…[Read more]

If you have trouble finding one that agrees then go elsewhere. They are not up-to-date and are not worth the money you are spending on them.

This ruling deals with the deductibility of interest on borrowed funds incurred before the commencement of, and after the cessation of, business activities. The ruling follows the High Court decision in Steele’s case (99 ATC 4242), and the Full Federal Court decisions in Brown’s case (99 ATC 4600) and…[Read more]

It is generally a landlord that either doesn’t have pets or thinks that they will destroy a property. Of all the properties we have owned we have always allowed pets but obviously most tenants haven’t had them. Of the 5 or so tenants who have had pets we have never had problems. We also requested that the carpets be steam cleaned and…[Read more]

No i don’t feel bad at all. In fact it is a landlords responsibility to know the body corporate laws and ask the relevant questions. We were never asked if we had pets. I think they assumed a couple with no children renting a $1,000 per week apartment would not have any “extras”. Well thats there problem. In fact we are excellent…[Read more]

Spot on. There was also a clause for that but unfortunately my wife and I have good vision. Well being a man I usually miss the toilet seat so I was instructed to sit down many years ago but I don’t think that would wash with the body corporate. But you are right a landlord would be in huge trouble with the anti discrimination…[Read more]

You are correct. Broadly speaking, any strategy directed at avoiding wastage of imputation benefits by directing the flow of franked distributions to members who can most benefit from them to the exclusion of other members, may amount to dividend streaming. When it applies, such benefits are treated as unfranked unrebatable dividends…[Read more]

Your examples are correct but I think Mortgage Advisor was talking about keeping your tax levels BELOW the 30% rate. In both of your examples this is achieved.

Note however that the $ 7,350 remaining in the company is the vehicle you will need to use for investing. For some people this is not suitable as they want access to the…[Read more]

I empathise with you and your wife’s situation. Unfortunately there are many people in a similar situation to yourself and there are many players who are responsible.

Firstly I agree that it is a tragedy that our government taxes those who earn a high wage soo much (as I have said before I am not against streaming income from the…[Read more]

that is exactly what I have done. I have sold all my Australian property including my PPOR. I did this about 8 months ago now with the view that the Australian property market had peaked and I would take my gain (pay capital gains tax – except on my PPOR) and then wait for prices to fall and reinvest.

At the moment I am living in a…[Read more]

Generally the ATO will…[Read more]

It will also trigger a CGT event but given that you would probably transfer the asset for the same price then this would not be an issue.

However stamp duty will be payable on the transfer. Make sure you get the…[Read more]

Then if the taxpayer does prove that the income was overstated…[Read more]

What difference does it make as long as people keep repaying…[Read more]

You will also need to make sure that the receipt has the words TAX INVOICE otherwise it is considered by the…[Read more]

I am one of the few fortunate souls whose parents benefited from family benefits while I was growing up (which enabled my mother to stay at home and raise a family) because my father…[Read more]

We are all public servants in some form (i provide management consulting advice to clients – so i serve my clients – who happen to be part of the public). lol.

Or maybe Greed is Henry Kaye who is disappointed that the current market is not…[Read more]

My plan is to…[Read more]

However I do think that the 2.5% capital allowance could be scrapped. I think…[Read more]

That to me would be a sign to stay cautious. The majority of NSW property investors (in fact I could probably make the same comment about property investors in general) are like lemmings. When one decides to jump over the cliff the rest follow. Sounds like the cliff has moved from the eastern seaboard to the western one.

I agree. I used to live in Dural before moving into the CBD and I have a lot of friends out that way and every time I am out there I am amazed at the number of for lease signs. I thought the Castle Hill, Glenhaven, Cherrybrook area was the sort of place for ones PPOR but the number of for lease signs has me perplexed. Loved the area but…[Read more]

Enough said.

Initially I had just written the first two lines but thought I should expand. The latest statistics are showing a decline in apartment prices in Melbourne and this has been happening for a short time now.

For a property in the high 300’s you are going to be struggling to get a positively geared property. The…[Read more]

However, it also notes that the costs of preparing and registering a lease and the cost…[Read more]