Wayne

My apologies

You said a few things which were very similar to things said by a guy nicknamed “sitting duck” on Hotcopper. My bad. Perhaps I have you confused with one of the other “crashy knockers” on this forum who carries a grudge from 5 years back.

One thing the “40% knockers” have not considered is the effect of small returns in small…[Read more]

Are these listed shares or private?
What is the dividend yield?
How much is the employee discount?
Why do you want to buy more?

My view of the market for the next 5 years is very good. This does not mean all stocks will go up though.

http://www.posigear.8k.com

bah

doogs is too modest

You should always consider the combined experience of all the share traders / investors here. Some pretend like they know it all though, so its hard to tell. As some have stated, they have 25 – 30 years experience. My expertise is in one area, that is positive gearing involving options and dividends. I studied hard to…[Read more]

Until recently, unless you knew which specific shares to invest in, a managed fund was the only option for the average investor. With the introduction of index CFD’s, it is now possible to invest in any market or sector. Fund managers rarely outperform the benchmark index, in fact it is well known that 80% of fund managers under-perform the i…[Read more]

lol

our ginger one is named tiger….with big floppy lions paws and stripes what choice did we have? lol

my cats compete to see who can find the biggest lizard. the female bought in a 2 foot long thing last week, it was not happy Jan.

http://www.posigear.8k.com

I have 5 years experience running a chatroom for shares. I dont think a chatroom for property would work well. The share market is open 6 hours, so the bulk of conversation occurs during this period. The property investors are likely to chat after hours, which would make it hard to string together a conversation. From a social perspective it would…[Read more]

Wayne

Or is it the duck that sits?

“The closing price of a $32 call option expiring 27th November 2003 was 45cents.”

I could swear I have educated you about using closing prices of options before on hotcopper. Once again:

DO NOT USING CLOSING PRICE AS VALUATION. THE LAST TRADED PRICE IS USUALLY OUTDATED AND IRRELEVANT. THEORETICAL PRICE SHOULD…[Read more]

“Trusts don’t pay tax (unless it is not distributed).” Is that possible? I thought a trust had to distribute ALL profits. If so, what is the rate?

http://www.posigear.8k.com

Thanks Terry, im glad someone finally answered.

I am getting a few requests to include structure info in my course, which is why I am researching it. Being a little known strategy it is probably a good idea.

So the main benefit is asset protection, I always thought it was tax minimisation. From what I have read today it seems most of the tax…[Read more]

What I meant was, medicare is added to the final net assesable income, so until that point, calcs should be done using 30% or 47%……especially when franking credits are involved. Its a minor detail but affects calcs where franking credits offset income. No effective income = no medicare.

http://www.posigear.8k.com

sadly it seems some people just aren’t getting the message……..

http://www.posigear.8k.com

Marketmad lol

He sends me free sample reports. About 9 months ago I got one saying “short the crap out of SGB at $17.50”. Immediately it ran to $22.00. Now he sends me another one saying “short the crap out of SGB at $21.00” lol hilarious. short banks with a 7% yield, good one. Does he expect a 15% yield or something?

TLS is ok I spose. I like…[Read more]

yep

understand now

I think we were having 2 completely different arguments LOL

So in conclusion you should always claim depreciation regardless or positive or negative gearing? Guess so.

The original argument was about yield vs cap gains, Jan Somers I think it was, was sayin that
cap gains was better because of the depreciation deduction. She…[Read more]

hmmm just read it again.

The argument is not about the compounding effect of the refund/excess cashflow. It is about whether it is better to claim depreciation or not. You are suggesting that only the refund can be invested in another property, when the excess cashflow can also be invested that way. You make it sound as though the refund money is…[Read more]

Jim

“I’m going to put this refund straight back into a second property that is going to give me a capital gain averaging 7% for the next 25 years”

then

“Now for a bit more fun, lets assume we put that tax refund in year 1 into a good cash account that pays 7% pa, ie with no capital gain involved, just to see the effect of nipping away at your r…[Read more]

Colonial First State warns investors that trust structures do not permit the flow-through for tax purposes of any capital loss accruing in the separate geared structure. This means unsuccessful gearing can result in a total loss of the original investment without any tax compensation.

This is, of course, why the government introduced a blanket…[Read more]

from another site:

Advantages of a trust include:

there may be taxation advantages – although this depends on current tax laws;
allows for income streaming;
limited liability etc.
The disadvantages of a trust include:

possible implication for capital gains tax;
distribution of tax losses;
establishment and administration costs etc.

http://www.posigear.8k.com

from ATO:

Trust

A trust is an obligation on a person to hold property for the benefit of others (who are known as ‘beneficiaries’).

The trust’s tax file number is used when the annual income tax return for the trust is lodged.

However, except in special circumstances it is the beneficiary, rather than the trustee, that is taxed. Usually the b…[Read more]

Jim

I understand from Steves book that he does not claim depreciation (might be wrong). Are you saying he would be wiser to claim it?

http://www.posigear.8k.com

Thanks Jim

I must admit I did not do the sums for every scenario crossed with every tax bracket. I simply did one sum based on the average wage. You are right in that some will get less benefit than others.

The normal ‘simple’ explanation of dividend stripping is that the capital loss is roughly equal to the net dividend, which cancels out,…[Read more]