cabramatt wrote:
Hi All,Sorry if these are dumb questions…I dont know where to find the answer so I am starting a new thread. I have 2 questions to ask about CGT:Situation 1: My partner has Property A (a PPOR).  Another property (property was bought in August 2011 and settled in September 2011. We wanted to buy property B in order to knock d…[Read more]

AC78 wrote:
Spoke to accountant today who reassured me that if we redraw on our current PPOR loan to pay deposit for an investment property, the interest is still deductible as it is an expense incurred in gaining income. If we were to redraw on PPOR and then rent it out it would not be tax deductible but as loan for new property it is. What i…[Read more]

Quote:
But now question is with borrowing to pay for interest? What are the acceptable reasons for ATO to believe that it is not a scheme but a genuine management of cash flow depending upon individual situation.

Th ATO are cracking down on this. If the rent from your IP is going to pay other non-deductible debt, then you may have an issue.…[Read more]

Agree with Terry. The expense is deductible because it's a deduction incurred in gaining income. The interest in this situation would generally be deductible.One issue i have is that you talked about your rent going into a PPOR offset?"ATO should not see it as a way of increasing tax deductible borrowing and paying full rent into PPOR."But they…[Read more]

I am looking at having a security screen door installed in one of my IPs, it does not currently have one, and for security reasons the tenant wants one in the house, is this considered a capital expense as it is an improvement, or as it is required for safety/security, is it depreciable?Generally, this would be able to be depreciated, as an…[Read more]

Solomon10 wrote:
Hi all, been looking at a few commercial properties for sale,small factories warehouses etc. What i would like to know is, with an advertised price of 300k plus gst,this would be 30k payable on settlement, would the purchaser also have to pay stamp duty like a residential property? Also how is gst paid if the purchaser doesn't…[Read more]

Capital gains tax is based on the contract date, so if you sign the contract pre- June 30, the income is declared in the 2011/12 financial year.The tax return must be lodged by October 31st (if you do it yourself) or as late as May 15 2013, if you are registered with a tax agent.You then usually get 21 days from the date of lodgement to pay the…[Read more]

I can recommend Jon Ward of Aussie Mortgage Brokers, based in Pirie Street. He worked really hard for us when we bought our new house last year.

jadamo76 wrote:
Is it worthwhile getting a depreciation schedule done up before settlement?  Or wait till after settlement?  I would not have a problem getting a surveyor access to the property. I am thinking with very little deductions this financial year might be worth getting a couple of costs through this financial year.

If you can get a…[Read more]

CGT acquisition date is the contract date, so 1st April. Interest on the deposit is claimable when the interest is paid, so you may have one month's deduction this financial year. Borrowing expenses on the main loan won't be charged until the loan is drawn, at settlement, so claimable from settlement date. "My thinking is that if it is considered…[Read more]

Hi Lila,I'm a partner in a small accounting practice, based in Norwood. Send me a PM if you would like some more information.

LXChev350 wrote:
Thanks Terry. So am I able to keep my current PPOR exempt from CGT even though I move out of it and rent it out? is there a time limit on how long it can be rented out before the PPOR CGT exception expires?

The time limit is 6 years. Terry's point is that the, as you can only have one Main Residence at a time, the new house…[Read more]

That's right. GST registration is only required if you are running a business. Developing for profit would most likely be considered a business, but a once off development as per your example would most likely not be considered a business for GST purposes.

Yes, you are on the right track. If you claimed GST on the purchase of the land, then the margin scheme is not available to you. Your other figures seem correct. GST using the margin scheme is calculated as 1/11th of the difference between the cost of the original purchase, and the sales price, not including stamp duty, agent's fees etc.

anthonyq wrote:
I thought i read somewhere on the SRO that you can nominate 1 PPOR in this type of trust for the CGT exception?

The SRO wouldn't talk about CGT, as the ATO is the body responsible for determining who has to pay CGT. Perhaps the SROP was talking about an exemption for land tax?To qualify for the main residence exemption from CGT,…[Read more]

pauln wrote:
Its been awhile and I’m still learning this tax game….As an update we still have 2 x IP’s in both my and wife names and our PPOR in both names. I’m interested in somehow increasing the loan on one of our IP through equity and put that onto our PPOR. Our IP is a LOC/IP loan that has $280k of debt while the house is worth approx.…[Read more]

johnoj wrote:
However how do trusts work in regards to initial costs and losses, i.e. are the purchase costs and expenses initially incurred by me personally tax deductible, or does the trust structure void this link? If the investment was negatively geared are these expenses a tax deduction?

The purchase costs are not deductible, eve if the…[Read more]

Terryw wrote:
Hi BobAre you asking if the CG from the sale of 1 property could be streamed to, say, 2 people and that each of those people can get the 50% CGT discount.I think the answer is yes. Any accountants out there?

The short answer is yes. If a discretionary trust makes a capital gain and distributes to one or more individuals, the…[Read more]

There is a program called 'Cashflow Manager', easier to use than MYOB, and looks like a spreadsheet on screen.http://www.cashflow-manager.com.au/Products/CashflowManagerGold.aspx It has cashflow software as well as Wages and Invoice programs.

Rob G. wrote:
Last time I looked, it was gross income – not taxable income.Only business deductions, or statutory partnership deductions (e.g. share of joint investment property deductions) allowed. Neither individual investment deductions, nor employee deductions allowed !!Better check on this one to see if anything has changed.Cheers,Rob

Hi…[Read more]