Yeah – a few comments and expansion:The exemption for Accountants (such as Chartered Accountants, CPAs & members of the NTIA) is currently still in place.  It is slated to be removed from 1 July 2012 – two years from now.  This is because the Government does not have a solid plan on how to replace the current exemption. The following is from a p…[Read more]

I have only briefly skimmed the previous responses, however have you considered utilising a SMSF to purchase the investment property?A SMSF has the following advantages:- You can now borrow – same as if in a trust or in your own name- Superb asset protection (better than a family / discretionary trust)- You can get a tax deduction for your…[Read more]

Hi SNMI think that Richard has provided some good information, however since I have also had a fair amount of experience with assisting my clients purchase property via their SMSF and utilising I would like to add a few points to assist in blue. a) Is there a restriction as to the type of property that can be bought in a SMSF? eg: block of 3 or…[Read more]

Answers to your questions:1. Can the rental price be set at an agreed price or it has to be market value?- Slightly below market may be OK (say 5% ish) assuming they will be good quality tenants and look after the place, however any excessive discounts on the rent may lead to your deductions being reduced proportionately. – Even though they are…[Read more]

GST is only applicable on the first time sale of brand new residential property.It would pretty much need to be knock-down and rebuild to be significantly / structurally different to be considered a new residential property.No GST issues for most renos.E

A depreciation schedule prepared by an appropriate qualified professional on a new property should pay for itself 10 times over in terms of the additional tax savings it generates in its first couple of years.If you need a referral to a good quantity surveyor let me know.Evove

Hi iball,Sounds like a pretty great profit you would make.I understand that you may want to crystallise the price now.Dwolfe is correct – after the rebuild you will be selling 'new residential properties' so you will have GST on the sale price.  You need to take this into consideration.In terms of the structure, maybe a trust with a corporate…[Read more]

See above.Also, if you have a significant number of residential properties, and it is basically a full time job managing those properties, you can be deemed as being in the BUSINESS of managing residential property.This means each of your properties could possibly be business real property so your SMSF can buy them from you – obviously you need to…[Read more]

Have you thought about using an SMSF?If structured correctly you can get the best of both worlds i.e. lower tax when you sell plus lower tax all the way through – regardless of whether it is positive or negatively 'geared'.Want to know more? If so let me know.CheersE

Olli,I reckon you need a person or firm who is the following:1. CPA or Chartered Accountant2. SMSF Specialist Advisor with SPAA3. Holds an AFSL (will be required for any and all who advise on SMSF borrowings / Instalment Warrants as per Gov press releases)4. Experience in similar transactionsAll the bestCheers

Just a quick announcement regarding an upcoming free series of seminars  This is a unique opportunity to discover today's most powerful opportunities to leverage your SMSF through trading and real estate. In this full day seminar you will discover how you could multiply your wealth using resources you already own and increase your investment…[Read more]

Each dealer group that holds an Australian Financial Services Licence (AFSL) determines the minimum education + competency requires for their individual authorised reps.The dealer group my employer is with requires the Diploma of Financial Services(Kaplan – first 4 subjects) as the minimum, but other groups take into consideration other education…[Read more]

The six years is when you move out of your PPOR (which is then rented) but you or your partner to not claim the PPOR exemption on another property for that time (i.e. you rent somewhere ele).The CGT exemption on your PPOR is not as simple as it seems.

ferry77 wrote:
And I have question… say if I buy property for primary residence for 2 years and within that period the value of property have increase say 100k, then after that I switch it become IP, and after several years sell it, does the first 100k gain is included in capital gain tax? (I am wondering because that gain is within non IP…[Read more]

Scott No Mates wrote:
Can a discretionary trust (or other trust) distribute to a SMSF or other SF (so that it only pays 15%). Does the SF need to be a beneficiary of the trust or is it good enough that it is my SF?

A discretionary trust can distribute to an SMSF – it should normally be picked up under the deed as a beneficiary, BUT (and it is a…[Read more]

The actual CGT is often not as much as people expect.Talk to your account BEFORE signing a contract and see if anything further can be done in advance to reduce your taxable income and hence reduce the additional tax when the capital gain is lumped on top of your other taxable income.

They don't even bother stamping them in some states – I know we don't here in QLD.Have had some issues with some banks asking for a stamped deed – guess they didn't get the memo.So many little hurdles to navigate through – no wonder this forum is doing a roaring trade.

In QLD you will probably have to send forms off to the Office of State Revenue to get is stamped as $NIL transfer duty payable before sending anything off to those 'people' at the Titles Office.See if you can get your ex to pay for a conveyancing – you may be able to save some further heartache.Onwards and upwards!

adam.risborg wrote:
Do you also list your corporate trustee as a beneficiary to the discretionary trust? Alternatively would you list another separate company as a beneficiary to the trust? I imagine this may be good in years where your trust income is unusually high, and some of that income can be 'stored' within the beneficiary company before…[Read more]

Yeah – although lawyers like to believe they know everything it is difficult to find a general lawyer who also keeps up to date on tax law.Maybe try to find a great property / conveyance lawyer who works closely with a great tax accountant and you will get the best of both worlds. I am an accountant who has been trained on structuring by lawyers -…[Read more]