PropertyInvesting.com | eddiec | Activity https://www.propertyinvesting.com/members/eddiec/activity/ Activity feed for eddiec. Sun, 12 Apr 2026 16:05:18 +0000 https://buddypress.org/?v=2.8.1 en-US 30 hourly 2 ad9b8bc01a11f9678e020eb0a7697406 eddiec replied to the topic Income tax: IS interest on interest- compounding interst on a rental propery a tax deduction? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396891-income-tax-is-interest-on-interest-compounding-interst-on-a-rental-propery-a-tax-deduction/#post-4607180 Wed, 05 Aug 2009 12:07:55 +0000 Agreed. The deductibility of an outgoing is wholly dependent on the purpose for which the outgoing was incurred.  Therefore, the interest incurred on interest that is attributable to a loan originally taken out for an income producing purpose is generally tax-deductible.  Dan42 is right though – if the sole or dominant purpose of letting the f…[Read more]

]]> af9f70d13f008851cbcbc75f06cace25 eddiec replied to the topic Family Trust Confusion in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396451-family-trust-confusion/#post-4605085 Tue, 04 Aug 2009 08:35:07 +0000 Terryw wrote:

eddiec wrote:

Terryw wrote:
If may be difficult to borrow the money in your own name unless you use your own property as security. It is difficult to borrow in your name if the company is the owner as this will be 3rd party lending.But, assuming you can, and you charge your trust more than you are paying, then you will be…[Read more]

]]> 758b723fbd34d7e2ab7885d5198f514b eddiec replied to the topic Family Trust Confusion in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396451-family-trust-confusion/#post-4605080 Mon, 03 Aug 2009 15:06:49 +0000 Terryw wrote:
If may be difficult to borrow the money in your own name unless you use your own property as security. It is difficult to borrow in your name if the company is the owner as this will be 3rd party lending.But, assuming you can, and you charge your trust more than you are paying, then you will be making a profit and diverting money…[Read more]

]]> 38d7d9489596979aa987807cc5e42362 eddiec replied to the topic 50% Tax Bonus for small businesses and Laptops in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396659-50-tax-bonus-for-small-businesses-and-laptops/#post-4606175 Sat, 11 Jul 2009 07:47:56 +0000 Terryw wrote:
hi CRJI think I recall hearing something about that now – will look into itFor the 50% bonus the asset needs to be over $1,000 for small businesses and to be classed as a small business the turn over needs to be less than $2mil.

That "double dipping" thing was a thing of the past, Terry.  It was sanctioned by TD93/145 for years…[Read more]

]]> 3d957b5be9c98052221b4b507a40426a eddiec replied to the topic CGT and subdividing PPOR in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395902-cgt-and-subdividing-ppor/#post-4602000 Tue, 14 Apr 2009 23:38:29 +0000 navyboy wrote:
hello all,just wanting to clarify a pointif you purchase a PPOR and happen to subdivide it, the sale of the new block has CGT with it. Yes?But what if you live in the house, subdivide, sell the house you live in ( CGT exempt) whilst building on the new block. which will become your PPOR once complete. will this help someone avoid…[Read more]

]]> f1ca622c26959c6a70a56fc12d43e4fa eddiec replied to the topic Convert PPOR to IP in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395978-convert-ppor-to-ip/#post-4602328 Tue, 14 Apr 2009 23:23:09 +0000 Terryw wrote:
if the renos were done to improve the house that you are going to be making rental income out of, then the interest should be deductible.

I agree with Terry – the interest on the loan in relation to the renovations will become tax-deductible when the property becomes available for rent.  Should also see if you could claim the…[Read more]

]]> 93850cff913951108eb2d9c0a56f8c21 eddiec replied to the topic Business Structure in Trust in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395820-business-structure-in-trust/#post-4601494 Mon, 30 Mar 2009 08:22:03 +0000 Be mindful though that transferring the assets from the existing company to a new trust may give rise to income tax (eg, CGT) and stamp duty.  To manage the income tax and/or stamp duty, consider setting up a holding company a unit trust and form a tax consolidated group.  Once consolidated, any intra-group transactions (eg, transfer of assets) w…[Read more]

]]> 7391b95c0969dbbb4fe9a0e371a86c39 eddiec replied to the topic Bank Break cost - Expense or capitalised on Investment Property?? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395831-bank-break-cost-expense-or-capitalised-on-investment-property/#post-4601559 Mon, 30 Mar 2009 08:15:42 +0000 jsawtell wrote:
Hi,Apologies if this has been posted previously.  Did a quick search.Question,I have an investment property which we are breaking the Fixed interest.  Are the Break cost tax deductable as an expense or capitalised until sale?ThanksJason

Hi JasonI believe the "breaking cost" is usually characterised as "penalty interest".  It is…[Read more]

]]> 7f19a5b252a4f73afd40f8b5b26af87c eddiec replied to the topic Drawing a wage from a Trust in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395587-drawing-a-wage-from-a-trust/#post-4600331 Sun, 08 Mar 2009 22:56:24 +0000 Terryw wrote:
Why wouldn't it? Most trust deeds allow a trust to pay an income to a trustee for managing the affairs of the trust. Most trusts are also allowed to run a business and pay wages as well. They are usually very flexible.But why pay a wage? Why not just pay a distribution instead. If you pay a wage then you need to worry about…[Read more]

]]> f6c1ac9bf5a2984712d0797294be4823 eddiec replied to the topic Property Law Advice Needed Brisbane in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395609-property-law-advice-needed-brisbane/#post-4600472 Thu, 05 Mar 2009 07:01:15 +0000 perpetrator wrote:
Hello All,Can anyone recommend a reliable property law expert that can advise on a JV agreement between a land owner and a property developer please? Prefer Brisbane based, however, will travel to the Gold Coast if required.

Please send through an email if you are still looking.Eddieeddiec@bigpond.net.au

]]> 869a0bf6143e1b56d730c0020ea9edd5 eddiec replied to the topic Drawing a wage from a Trust in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395587-drawing-a-wage-from-a-trust/#post-4600328 Tue, 03 Mar 2009 23:11:12 +0000 Agreed – provided that the trust deed does not prohibit the arrangement.Eddieeddiec@bigpond.net.au

]]> 073de0819eb5f9cbb4e710eddfb19392 eddiec replied to the topic Capital Gains Tax in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395463-capital-gains-tax-42/#post-4599465 Wed, 25 Feb 2009 00:56:33 +0000 No, you don't have to move back in.  The law says as long as it was your main residence before you moved out, you have up to 6 years to continue treating it as your main residence even though you are renting the property out, provided that you don't own another main residence elsewhere.Eddieeddiec@bigpond.net.au

]]> 4c787f06f419e0f2adef9686972580a4 eddiec replied to the topic Buying own residence in trust fund in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395444-buying-own-residence-in-trust-fund/#post-4599389 Mon, 23 Feb 2009 05:16:22 +0000 There is a strategy I am aware of that protects the equity of a property in an individual's name.  However, you will still need to use a trust on the side.  The property will be treated for income tax purposes as if it is owned by the individual, not the trust.  If you go travelling, the potential tax implications will depend on whether you ha…[Read more]

]]> 20507373be9e9b08fe65af7f4d876336 eddiec replied to the topic Negative Gearing a London flat here in Australia in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395491-negative-gearing-a-london-flat-here-in-australia/#post-4599715 Sun, 22 Feb 2009 23:09:46 +0000 duckster wrote:
Apparently it depends on when prior to 1 July 2008 deductible expenses on an overseas property can only be deducted against foreign rental income or other foreign modified passive income such as royalties and dividends.After 1 July 2008http://www.ato.gov.au/individuals/content.asp?doc=/Content/00107951.htm&page=5&H5It can be…[Read more]

]]> 1dfc4b71dc4bfc622f93977d06da1f46 eddiec replied to the topic Buying own residence in trust fund in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395444-buying-own-residence-in-trust-fund/#post-4599387 Wed, 18 Feb 2009 23:21:03 +0000 Don't recommend artificially inflating the rent – the Commissioner can apply the general anti-avoidance provisions in Part IVA to unravel the arrangement.  On top of that, they can hit you with penalties up to almost double the tax shortfall.  Definitely worth it in my view.  For future planning, you need to ask yourself: Am I doing this with th…[Read more]

]]> 6129f6e3b4a8a1f1a29a3b51467e0201 eddiec replied to the topic Buying own residence in trust fund in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395444-buying-own-residence-in-trust-fund/#post-4599383 Tue, 17 Feb 2009 14:52:42 +0000 Yes, the arrangement is legal but there are two key issues:1. As Terry pointed out, the trust must have enough income to utilise the negative gearing loss.  Otherwise, any resulting tax loss will be trapped in the trust.2. The future sale of the property will not be sheltered by the main residence exemption for CGT purposes.  If an individual o…[Read more]

]]> b2eb81e424307ad4b65f070e9f8d013b eddiec replied to the topic Whose money is it anyway? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395399-whose-money-is-it-anyway/#post-4599214 Thu, 12 Feb 2009 14:24:30 +0000 Sounds fine from a tax perspective because no cash actually moves in and out of the actual investment loans, which means that any interest incurred on the loans will remain tax-deductible, albeit the interest incurred may be reduced when there is money in the offset account.  This is so regardless of whether the spare money gets put into you or…[Read more]

]]> 1e84e714c02b560cd71eaee6776b5ce3 eddiec replied to the topic If selling via vendor terms , where does tax come into it ? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395391-if-selling-via-vendor-terms-where-does-tax-come-into-it/#post-4599193 Wed, 11 Feb 2009 23:00:11 +0000 It will be dictated by the contractual terms of the sale.  Unless you carry on a property business or you are doing this as a one-off profit-making undertaking, any profit on sale will likely be taxed under CGT.  If so, the date of the contract is when the sale is deemed to have occurred.  Because of this, it may be worthwhile to use an option to…[Read more]

]]> 887d1c3ce91554a505af3e3621a46060 eddiec replied to the topic Defer Income Taxes with a 1031 Exchange in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395338-defer-income-taxes-with-a-1031-exchange/#post-4598905 Thu, 05 Feb 2009 05:34:49 +0000 freelance2020 wrote:
Hi Everyone,I've heard about this method a few years back called a 1031 Exchange in America. The following is a brief outline:Overview: Real estate owners or investors expecting to acquire property subsequent to the sale of existing property can indefinitely defer income taxes by utilizing a 1031 exchange. In a typical…[Read more]

]]> 6d4f614d68a23cd4f0b60cc1d944a9c3 eddiec replied to the topic Who best to set up a company (and advise) in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395326-who-best-to-set-up-a-company-and-advise/#post-4598852 Thu, 05 Feb 2009 03:26:46 +0000 If it is just business structuring, a tax savvy accountant would do.  If there are specific legal issues that will need to be dealt with, the accountant will refer you to a lawyer anyway.However, if there are contracts involved, eg, shareholders agreement, contract with third parties, it is best to get a lawyer to review these documents in any…[Read more]

]]> 417ce7499792c31af3d8fe81d3c9d830 eddiec replied to the topic Purchase of Vacant Land. Expenses deductable? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395319-purchase-of-vacant-land-expenses-deductable/#post-4598817 Wed, 04 Feb 2009 03:48:24 +0000 mantismm wrote:
Hi everyone,I purchased an vacant unimproved lot adjacent to my primary residence this year. I may sell it one day for profit, on which I would certainly pay CGT. My question is: can I deduct the legal and title fees I incurred in buying the property, since it is an investment?Thanks,Kevin

No – the costs will be included in the…[Read more]

]]> 6b89ffd32f44cd251e34323e6a17b1b2 eddiec replied to the topic Selling a property to spouse in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395299-selling-a-property-to-spouse/#post-4598685 Mon, 02 Feb 2009 06:33:55 +0000 You mentioned you have a current PPOR, so the old PPOR will be subject to CGT.  The CGT will be apportioned, however, to the CGT attributable to from the time you bought the new place to when you sell, relative to the total ownership period of the property.  Also, you will most probably be entitled to the 50% CGT discount.  Yes, that will be a go…[Read more]

]]> 8ca24f40b8de8b63a529e26b2b7574cc eddiec replied to the topic Creating a Trust fund in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395267-creating-a-trust-fund/#post-4598496 Thu, 29 Jan 2009 07:59:35 +0000 Hi ThomasEmail me. In any case, I think hybrid trusts are probably not worth the effort relative to the risks and complexities inherent in them.Eddieeddiec@bigpond.net.au

]]> 4d03dfc4a43ee01d5c2e379cfc800771 eddiec replied to the topic Creating a Trust fund in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395267-creating-a-trust-fund/#post-4598494 Thu, 29 Jan 2009 02:03:08 +0000 There are "standard" trusts that are more or less off the shelf and there are more specialised trusts where the deed is specifically drafted for a particular purpose. What exactly are you after? Also, is this just a private trust for your family or say a unit trust for multiple investors?Eddieeddiec@bigpond.net.au

]]> 9d06769eb9d6771ac07e89fa2cb6abbc eddiec replied to the topic Anyone reccomend a Lease to Buy Solicitor for Seller in Brisbane Area ? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395253-anyone-reccomend-a-lease-to-buy-solicitor-for-seller-in-brisbane-area/#post-4598432 Wed, 28 Jan 2009 23:00:59 +0000 What is the approximate dollar value of the property?Eddieeddiec@bigpond.net.au

]]> e4997bdf263f7f9c273f5f2b57164465 eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/6/#post-4596867 Wed, 28 Jan 2009 22:57:38 +0000 PS – even so, I would still check with FIRB to see if a discretionary trust is acceptable on an anonymous basis.  Not familiar with the FIRB law myself but there are far reaching tracing provisions in the tax law that would drag related entities, including discretionary trusts, into various rules.  I would imagine FIRB wouldn't be too d…[Read more]

]]> 8373ecfd86a736b015db5413ee6a162b eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum I agree.  Under a bare https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/6/#post-4596866 Wed, 28 Jan 2009 22:54:50 +0000 I agree.  Under a bare trust, you retain beneficial interest in the property and I doubt FIRB would permit that.  On the other hand, if you are using a discretionary trust under which there is generally no presently entitled beneficiary at any one time (unless the trustee makes a distribution of corpus), it's an entirely different proposition f…[Read more]

]]> fad02b4335580f3f9550e0e5fdcd3436 eddiec replied to the topic FHOG Qld- Trusts/Buyers in Common & disqualifications in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395211-fhog-qld-trustsbuyers-in-common-disqualifications/#post-4598164 Wed, 28 Jan 2009 11:45:45 +0000 The difference in GST treatment between the two scenarios is due to the concept of "enterprise" in the GST Act.If a trust buys land, builds a house on it, and sells it to someone (whether related or otherwise), the series of activities will likely be treated as an "enterprise" under section 9-20 of the GST Act.  One of the key criteria for GST to…[Read more]

]]> 6cc899fec823148d220c92196ea6a2a1 eddiec replied to the topic Ownership structure in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395223-ownership-structure/#post-4598211 Wed, 28 Jan 2009 02:04:25 +0000 I agree.  You will be taken as if you have on-lent your half of the loan proceeds to your wife to enable her to buy the property.  In your tax return, you need to show an interest income and interest deduction of the same amount (being the interest charged by the bank on your half of the loan).  Your wife will then claim the interest on the en…[Read more]

]]> 649c607c8f217768916d525ec6b3fbff eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Provided that the corporate https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/5/#post-4596862 Wed, 28 Jan 2009 01:13:59 +0000 Provided that the corporate trustee was incorporated in Australia, the trust will be an Australian tax resident.  This is so regardless of whether the shareholders of the corporate trustee are Australian tax residents or otherwise.  Not sure about the FIRB requirements either but if you are the appointor of the trust, you may substitute the t…[Read more]

]]> c9ecdaab5b38666a188a5cfd9079a17e eddiec replied to the topic FHOG Qld- Trusts/Buyers in Common & disqualifications in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395211-fhog-qld-trustsbuyers-in-common-disqualifications/#post-4598160 Tue, 27 Jan 2009 12:24:44 +0000 <!– /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0;…[Read more]

]]> 0d7e1c92db61de0d528a5784f5c373d7 eddiec replied to the topic CGT on sale in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395206-cgt-on-sale/#post-4598142 Thu, 22 Jan 2009 00:51:42 +0000 Linar wrote:
I have a CGT questionIf I have a property in a trust that has incurred several losses over the years, mainly through negatively gearing, can see a property in that trust for a profit and offset any CGT against the losses?  Or can I only offset capital gains against capital losses?CheersK

Also need to ensure that the trust has made…[Read more]

]]> 98205287a23e929ef535476aa4306cf3 eddiec replied to the topic Re Draw of on Interest Only Loan in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395182-re-draw-of-on-interest-only-loan/#post-4597965 Tue, 20 Jan 2009 03:45:31 +0000 Terryw wrote:
Yes, you can reborrow the $10k. The interest would be attributed to the new property. If you are using a trust, then you would lend the trust the money and charge it the same interest as your loan and the trust gets to claim the interest in its tax return.

Speaking like an accountant.  Well said, Terry. :)I do generally recommend a…[Read more]

]]> 56e95c9c08c0ba9effd2dba82578770d eddiec replied to the topic Legally reducing income tax in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395165-legally-reducing-income-tax/#post-4597871 Sat, 17 Jan 2009 03:38:02 +0000 When was the book published?Eddieeddiec@bigpond.net.au

]]> 95cac42af102cbf8b805e829234d28a4 eddiec replied to the topic Legally reducing income tax in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395165-legally-reducing-income-tax/#post-4597869 Fri, 16 Jan 2009 15:30:02 +0000 Scott No Mates wrote:
Consider setting up your own smsf – salary sacrifice into that and use the funds at some point to purchase an IP. Set up your own IT company and have it as the contractor – then split your income with the +1.It may pay to see an accountant/financial planner to discuss strategies applicable to your situation.

Both good…[Read more]

]]> d14adceed9b8e7d6e020a1508c52c973 eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/5/#post-4596857 Wed, 14 Jan 2009 01:24:27 +0000 I am based in Brisbane but this forum is more like a hobby for me than a marketing tool anyway. :)Good luck with your investments!Eddieeddiec@bigpond.net.au

]]> 163a168a7d710d76ab5a8c64ba340123 eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/5/#post-4596855 Tue, 13 Jan 2009 09:46:20 +0000 Thanks for the vote of confidence, Terry! :) Yes, of course – more than happy to help. :)Eddieeddiec@bigpond.net.au

]]> 6318a792df331367004ed5ebd3f5baf9 eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum daniellee wrote:Hi, https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/5/#post-4596853 Tue, 13 Jan 2009 07:55:18 +0000 daniellee wrote:
Hi, EddiecThe accountant is a CPA, so that helps in this case.Good to know that an income loss can be offset again capital gains.One more question: Does making a Family Trust Election have any disadvantages, in terms of limiting who the beneficiaries are? Or it has absolutely no effect what so ever on the Trust as a…[Read more]

]]> ba43ebf77626d98984a1f425a7bf6b71 eddiec replied to the topic Transferring property in a company in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395100-transferring-property-in-a-company/#post-4597630 Mon, 12 Jan 2009 09:41:55 +0000 Terryw wrote:
Thanks again Eddie

My pleasure as always, Terry! :)Eddieeddiec@bigpond.net.au

]]> 9bcbebddd96a8a1111ce6d682aa681e7 eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/5/#post-4596851 Mon, 12 Jan 2009 04:13:04 +0000 Or the plumber with a leaky tap at home – speaking of which, I haven't lodged my own tax return for 2008 yet! ;)Eddieeddiec@bigpond.net.au

]]> 1cf9b5fd316fa9e242cda47e856b241c eddiec replied to the topic Australia / UK tax implications in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395083-australia-uk-tax-implications/#post-4597518 Mon, 12 Jan 2009 01:00:21 +0000 1. Yes, feel free to email me.2. Upon becoming an Australian tax resident, there are various tax implications, eg, the market value of any CGT assets you own will become their cost base for Australian tax purposes.  It is usually unlikely that double tax will apply because of the Double Tax Agreement between Australia and the UK.  The DTA u…[Read more]

]]> 4e697be613e34e3599ee6b92378c3eee eddiec replied to the topic Trust Distribution Accounting Treatment in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395092-trust-distribution-accounting-treatment/#post-4597599 Mon, 12 Jan 2009 00:52:07 +0000 I think you've got the idea.  1. P&L gets closed off to the beneficiary accounts as "share of profit", based on how the amounts have been distributed to each beneficiary.2. When real cash is paid, the payment will simply be coded to the beneficiary accounts as "drawings".Each beneficiary will pay tax on their share of the taxable income of the…[Read more]

]]> fb8ff03cf6c710cfa80017240e175bbb eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/page/5/#post-4596849 Mon, 12 Jan 2009 00:47:55 +0000 Terryw wrote:

Dan42 wrote:

Terryw wrote:
Hi Daniel$8,000 per year is a big loss!Did you know that CG cannot be offset by income losses? I have never had an income loss so am not too sure how it works, but this is something you should discuss with an accountant.What I think it means is, using your above example, you will have to distribute…[Read more]

]]> fb9f3a8f721f3f43d6c171af1271148a eddiec replied to the topic Transferring property in a company in the forum Terryw wrote:CRJ I think CGT https://www.propertyinvesting.com/topic/4395100-transferring-property-in-a-company/#post-4597628 Sun, 11 Jan 2009 22:30:09 +0000 Terryw wrote:
CRJI think CGT would be payable on the value of the shares transfered – but you raise an interesting point. What happens if the company sells one property?

Yes, CGT will apply to the sale of the shares, in which case, provided that the shares have been held for at least 12 months, the 50% discount may apply.  If the company sells…[Read more]

]]> ca77f33019ed9a437e15c9276bcd843b eddiec replied to the topic Trust Distribution Accounting Treatment in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395092-trust-distribution-accounting-treatment/#post-4597597 Fri, 09 Jan 2009 00:26:43 +0000 jxuereb wrote:
Hey guys,Getting my head around trust structures. In the Accounting books what are the entries for the distribution at the end of the financial year? I know they are paper entries but I'd like to see what the double entries look like. Can't seem to find an example in my books or online.When its a company the profit gets closed off…[Read more]

]]> 6947e76cd64b274d9650ed2533ca0e8e eddiec replied to the topic Capital Gains Tax & Deductions for Land in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395064-capital-gains-tax-deductions-for-land/#post-4597433 Wed, 07 Jan 2009 04:30:10 +0000 The main residence exemption applies to a "dwelling", which is defined to include "any land immediately under the unit of accommodation". However, generally speaking, a "unit of accommodation" must be a building, a caravan, houseboat, or other mobile home.  Therefore, unless your partner had lived on the vacant land in a dwelling as described, my…[Read more]

]]> 8cf0f555724c495930fd909e062e4128 eddiec replied to the topic Structuring recommendations for a NZ citizen/resident investing in Auzz?? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395069-structuring-recommendations-for-a-nz-citizenresident-investing-in-auzz/#post-4597455 Wed, 07 Jan 2009 04:20:28 +0000 I agree with Terry – a trust probably provides the best asset protection outcome for rental properties but be careful with the tax residency status of the trust – generally, if the trustee is not an Australian tax resident, the trust will be a non-resident for Australian tax purposes and that will pose Australian, as well as NZ tax issues.  Also,…[Read more]

]]> 4f7f1bc7e80d10fb0b47a3f1a1212856 eddiec replied to the topic To Trust or not to Trust: that is the question. in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394947-to-trust-or-not-to-trust-that-is-the-question-4/#post-4596779 Thu, 18 Dec 2008 05:27:51 +0000 PosEnterprises wrote:
Thats interesting Richard because it seems that Chan & Naylor like to push the field of Trusts. So what structure are accountants recommending then for asset protection and interest deductiblity? Any accountants care to give their thoughts. I am glad that their are finance brokers here saying that finance is the first field…[Read more]

]]> 02c48a31ef1122709f72028e7fb540b7 eddiec replied to the topic Advice on loan structure and interest deductions in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394640-advice-on-loan-structure-and-interest-deductions/#post-4595179 Thu, 04 Dec 2008 23:42:21 +0000 grasshopperinvestorJust a brief caveat – be careful with what you are doing with that letter saying you went into the arrangement solely for tax purposes – the tax law contains a general anti-avoidance provision (Part IVA) which empowers the Commissioner of Taxation to unravel an arrangement where the dominant purpose of entering into the…[Read more]

]]> a883263f2bb36e196de04399ac8846c3 eddiec replied to the topic Purchasing IP with SMSF in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4394817-purchasing-ip-with-smsf/#post-4596027 Thu, 04 Dec 2008 23:37:36 +0000 It's also quite expensive, as I gather, because the "instalment warrant" (code for borrowing by super funds to buy property) rules are reasonably new and exotic. The last time I look, the lawyers were charging something like $8K to set one up.Eddieeddiec@bigpond.net.au

]]>