You may not have to move into the property to qualify for the PPOR concessions depending on your history of the property and whether it still qualifies as your PPOR under the 6 year absence rule.  If it does, then you d…[Read more]

If you are as resident at the time of sale, you get all the other previous exemptions like the 6 year absence rule.

Therefore, if you are outside the 6 year time period, you can still get the 6 year exemption and then be taxable on the days that exceeds…[Read more]

Steve has asked me to clarify some of the issues raised.

The Bill initially introduced (8/2/18) to remove the CGT exemption for non residents lapsed when the 2019 Federal Election was called.

Unfortunately the Bill was reintroduced on 23/10/19 and was given royal assent on 12/12/19

Key points are:

– The measures apply from 9th May…[Read more]

Therefore, even if you are on top marginal rate of 48.5%, your effective tax rate is 50% of that (24.25%).

That’s whey when using a trust for property…[Read more]

The cost can be paid by the trust as it relates to the running of the trust structure.

A company trustee shouldn’t be trading in its own right and therefore will not have a bank account to pay such expenses.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

The answer is no.

In order to claim GST, you must either be registered or required to be registered. This means that is must be in the course or furtherance of an enterprise.

Simply put, if you were building the property to on sell, you would be regarded as running a business and be required to register for GST. You would…[Read more]

If you are moving to Australia permanently and considered to be an Australian resident for tax purposes, you are assessable on your worldwide income.
You would have to check with your accountant in the Netherlands but I’d imagine you would still have to do a tax return for your rental property over there also.
If you have to pay tax…[Read more]

These costs are know as borrowing costs and are claimed over the life of the loan or 5 years (which ever is the shorter).

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

My understanding is that there is a 15% withholding tax on the dividends paid from the U.S to Oz.

The withholding tax is offset against your Australian income payable on the dividend.

Depending on which state you incorporate your U.S C Corporation, you may only be paying 15% income tax in the U.S.

Cheers,

Mark Unwin
Williams…[Read more]

The LLC can purchase the property and rental income can be distributed to a C Corporation you setup (U.S company). U.S state & federal tax is paid on this.

Capital gains the LLC dervies are distributed to your Australian trust and taxed in Australia.

To get the money from U.S to Oz, the C Corporation will need to pay a dividend to…[Read more]

The valuation method doesn’t mean you pay more or less tax. It is dependent on how much the property has gone up in value whilst it was your PPOR.

You can only have one PPOR (there is a small time limit where you can claim both in between moving). Therefore it is your choice whether you treat your IP as being your PPOR (in which case…[Read more]

It is a great start to the season and a win is a win but lets put it in perspective.

We have beaten teams that finished 2nd & 3rd last in 2004 and Freo in Melbourne (they were a disgrace last Sunday – but it was enjoyable to watch![biggrin].

Hey Skippygirl, I was at that 1995 final also. What a game, bring back Matty…[Read more]

I may have read your post incorrectly but just to clarify –

You will only be able to claim the loss if your deductions were greater than your income. If your deductions result in your income being between $0 – $6000, you will not be able to carry forward.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

There are no capital gains tax implications however your cost base will become the valuation of the property once it is available for rent.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

When the property is originally your PPOR and then changes to IP, valuation method is taken.

When property is IP that changes to PPOR, number of days to used.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

If the property was first purchased as IP, you must pro rata the number of days you held it for investment as opposed to the number of days PPOR. The capital gain is then reduced by this %.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

It is not a major tax issue.

If you are unable to claim the 6 year absence rule (i.e you are buying a PPOR elsewhere), you need to take a market valuation of your property at the date it ceased being your PPOR. This then becomes your cost base for CGT purposes.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

The 221D is lodged with the ATO to reduce the amount of PAYG that is deducted from your salary each pay period.
This form is lodged when you have a negative geared investment and/or substantial deductions (i.e. motor vehicle).
The form is effectively an estimate of what your tax return will show at the end of the year.

If you do not…[Read more]

GST is only applicable on commercial property. If you are wrapping residential property (that is not newly built), you need not worry about GST.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Ideally, you should list your depreciation schedule in the contract of sale to state that the sale of the chattels will be at the written down value. Otherwise you could have an assessable gain which is not eligible for the capital gains discount.

When this is…[Read more]

To claim a deduction, you would need to rent the property out initially before getting the repair work done.

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

A discretionary trust and family trust are the same thing.

Family trust elections were introduced around 1996 by the ATO. They were brought in to reduce the number of tests a family trust had to pass before being allowed to claim its prior year losses.

They are also required when imputation credits over $5,000 are distributed to…[Read more]

Brotherly love, you are bringing tears to my eyes!

A structure you could use with your brother is a family trust. As you are related, you are both eligible to receive profit distributions without any tax issues arising (i.e. family trust elections as I mentioned before).

You should document your agreement as to how you are investing and…[Read more]

A company may not be the best option for you. Whilst this is simple for a joint venture and income tax is capped at 30%, you will not benefit from the 50% exemption on any capital gains you make.

A trust could also pose a problem if your trust incurrs losses (family trust election rules meaning future income can only be distributed to…[Read more]

At the end of the day, if you are found to be negligent for workcover, the director can be held personally liable as well as the…[Read more]

Looks like the study is paying off. You are spot on with your discussion about source & residence.

There are creative ways of trying to avoid this but I do not encourage that.

The NZ rental income is declared on your NZ tax return and also your Australian tax return as foreign income (with a foreign tax credit).
If a capital gain…[Read more]

You can still purchase your family home in a discretionary trust and claim interest and deductions provided the rent being paid is at a market rate. My experience has been that this is more trouble than it is worth.
Unfortunately the tax rules disallow you from claiming an individual tax deduction via a unit trust…[Read more]

1. Spotters Fee – If you are an investor, this would be added to the cost base of the asset as an ‘incidental cost in acquiring the asset’. The deduction is not allowable as the cost was incurred before the asset derived income.
However, if you were a property ‘trader’, the cost would be tax deductible.

2. NZ Seminar / education -…[Read more]

Finance seems to be the biggest hurdle as to why you need a NZ Trust. However, as the entity has to lodge a NZ tax return and apply for the relevant file numbers, it is probably easier for your NZ accountant to have a NZ structure (Best to ask them).

Cheers,

Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.au

Be careful of setting up a NZ entity where NZ residents ‘control’ your structure to avoid being taxed in…[Read more]

As a general rule, a trust is the best structure to purchase your investment property. However, this may not always be the case depending on your personal details and your future intentions with investing. It will also depend on whether the property is postive cashflow or negatively geared.

The issue you currently have is…[Read more]