Hi Dom,

Just clarifying so we are speaking the same language.

Assume work related income is $40K, rental income is $20K, no work related claims and rental claims $25K.

Gross taxable income in this example is $40K + $20K – $25K = $35K and not $40K.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never…[Read more]

Hi James,

I would argue the property was fully available for rent from the 16/1 and a such costs and incomes shold be apportioned from this date.

I am assuming the period 10/1 – 15/1 wasn’t available for rent due to the work being done.

However in terms of CGT liabilities the ‘date’ becomes a little messier. Recommend a look at the ATOs website…[Read more]

Hi JV,

We are currently at a point in the market where rental returns are very low. This combined with the interest rate rises of late 2003 means the likelihood of you finding something that qualifies as positive cashflow as per Steve’s 11 sec rule in Perth is very remote.

As such some people are venturing out into the ‘sticks’ for these…[Read more]

Hi Dragonlady,

Provided the property was available for rent then you are able to claim all relevant costs including loan interest, rates, taxes, insurance, repairs etc.

If however you moved into the property these costs would not be deductible.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Residential Wealth,

Just a minor clarification – Average wage across Australia for males was $49600 and for females $41900 in January 2003 (source ABS)

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Dianne,

I would suggest that you ring the property manager and discuss your concerns with them directly and if you are still not satisfied then move agencies – as a word of encouragement finding the first tenant always seems to take the longest. Historically mid-winter is the slowest time to fill vacancies.

As for selling – doon’t panic – you…[Read more]

Hi Dom,

As Rob indicated you didn’t tell us whether or not your annual incomes $40K & $30K were wage/salary only or were gross taxable incomes inclusive of net rent.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Rob,

The exemption from stamp duty is a state matter and a call to the state revenue department is the best cours eof action. I believe Victoria allows for transfer of titles between husband and wife without stamp duty penalty – NSW ?

I understand the ATO is less lenient and as such any change in ownership will trigger a CG event.

Definitely…[Read more]

Originally posted by BEAR1964:

And then once the beach property is rented oout can i then claim the interest on such property on tax?

Regards Bear

Hi Bear,

You will be able to claim all the usual expenses from the period that the proeprty becomes income earning, but you will not be able to claim for expenses previously incurred when you lived…[Read more]

Hi all,

Trying to tidy this up a little – please be aware I have no qualifications in accountancy and as such a discussion with your accountant and/or ATO is advised.

Capital gains is levied in accordance with proportional ownership as determined by the names on title documents. Joint ownership = 50/50 and tenants in common as shown. Whatever is…[Read more]

Hi Pisces,

As I understand it capital gains are added to your taxable income and levied accordingly.

As such realising all of your gains in the one year increases your gross income and as such you’ll be up for more tax.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Dom,

Option 2 would only apply if you had made some losses on other recognised investments property, shares etc.

If all of your investments have made capital gains then this option isn’t available to you.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Dom,

Some suggestions;

1. Don’t sell them all in the same financial year.
2. If appropriate balance the gains with other losses elsewhere.
3. Sell in a low/no income year.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Jars,

Another thought – the holiday property almost doubles your debt level but yet only contributes around 25% of your total rental income.

Seems to me it will be a long term drain – having said that maybe some well located in good growth areas that add proportionately more to your total rental income may be a better option than pure…[Read more]

Originally posted by 1HotValuer:
Kay,
we use very expensive paper.

Love the sense of humour[biggrin]

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Gataga,

I’m curious, why you are considering this move?

I notice you have $35K available to you.

It seems to me that, provided you qualify, and meet FHOG guidelines you would be better off buying your own property in your own name.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi SIS,

The wife and I have spent most of our time in rental accommodation – work related so not by choice.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Hi Mydral,

As the property used to be your PPOR (and assuming you don’t have a new PPOR) then you will have a 6 year exemption before any CGT kicks in.

If however you bought another place to live then any CG will be apportioned over the period of ownership. Eg 75% of the time the property was your PPOR then 75% of the gain is exempt from…[Read more]

Hi all,

Another way of considering the ‘four quarters’ from this mornings SMH.

Derek
derekjones1@bigpond.com

Property Investment Support Available. Ongoing and never stopping. PM welcome.

Act now to avoid sorrow tomorrow
June 5, 2004

When it comes to retirement planning, too many of us delay. Here’s a spur: the ‘life as a week’ analogy.…[Read more]

Originally posted by Myydral:

Much to my surprise, I have found that my IP is negatively geared. Looking at the raw figures, the deal seems good. But when all expenses are taken into consideration, the goodness fades very quickly. This is not what I intended. I have a couple of questions regarding this.

Without casting aspersions or arrows at…[Read more]