As regards the motor vehicle the 4 methods of calculating your deduction are available – though your probably only eligible for 2 of them, and the rate per km will probably give you the best deduction. You could use the log book method, but it’s unlikely you would get a reasonable percentage.

As regards the trailer,…[Read more]

What do you mean by “apparently my provider charges differently?”

and, whats stopping you including a flat charge for weekly rent and power / bills ??

The power / gas / phone co does ask if your renting when you call them to have services connected. But that’s only so they can verify with the agent that you actually live at the address your having the power connected to.

Luke is right about the offset account – dont use a redraw.

Re your wife’s lower taxable income, you can not claim her costs in your tax return, even though you’ve paid for them.

The best way to explain this situation is by example. Say for three consecutive years her salary is $50k, $0k, $50k, and in each of those years her rental…[Read more]

The way I see it this forum is probably the best place to “get some knowledge under your belt” – so please don’t apologize for asking questions.

In theory the cost base for CGT on the front block would be it’s current market value if it were already subdivided. I say “theory” because there’s always a range of what…[Read more]

The concept that your up against is that whilst it’s easy to give an ‘average’ amount of depreciation for a property of a particular value, giving an estimate of depreciation for a particular property requires a lot more information. For example, if I asked you to estimate my weight given that I’m a 30yo male, the only answer you could…[Read more]

Sounds like a tough situation.

The agent can’t really do anything for you, because your not on the lease. Your best bet is to convince (read coerce) your ex into breaking the lease and recommending you as the new tenant. If you play the game right the agent is very likely to let you sign a new lease in your own name.

You’ll be able to…[Read more]

If it was transferred on 1 June @ a market value of $360k, then you would incur a capital loss of $14k ($7k each) which isn’t deductible against your other income, only against any other (or future) capital gains.

So then if you sold in 2 years for $400k. There’d be a capital gain of $40k, ($36k for one of you, and $4k for the other) So…[Read more]

Whilst ‘prima facie’ it appears to be just a ‘percentage change’ – from a tax perspective your selling the property to yourselves. So whilst some states will give you a concession on stamp duty, the transfer is still a capital gains tax event.

Because no cash will change hands the cgt up to the day the property is transferred cgt…[Read more]

You need to determine your UK income according to UK tax law. So depreciation would have to be calculated according to UK tax law. Unfortunately you can not apply Australian Tax Law (or concepts thereof) in determining your foreign source income, the amount needs to be determined according to the relevant local laws in the country of…[Read more]

I’d claim it, but expect the ATO to question the deduction, when they do… write to them (an accountants letterhead wouldn’t hurt) and…[Read more]

For example, here in WA all property agents use the ‘stock’ forms from reiwa (real estate institute of wa) I dont think…[Read more]

Question 1:
In brief.. it’s complicated. Usually where you have a depreciation schedule prepared, to get the maximum advantage in the short term you would use a diminishing value method. In the case of your property, that time has passed. However you can still claim 2.5% of the cost of the capital works every year, for the first 40…[Read more]

It's easy for things to become…[Read more]

That's probably true, but they usually give the worst answers, and they wont give you the context of other options. The ATO will simply tell you that your using your home to generate taxable income, therefore you must declare the income,…[Read more]

In short, you have to actually move in.

You can extend the PPORE on a property after you move out (regardless of whether your renting or living in a home you own), but you can’t just nominate one of your investment properties because your currently living in a rental.

In the case of the antenna, its likely less than $1000, and could therefore be allocated to a low value pool.

Terryw’s advice is right on the money. Talk to an accountant, and have them recommend a local finance broker.

Talking to your local branch is tricky, they’re representing the interests of the branch, not yours. Also, unfortunately they often have no training nor experience whatsoever, aside from a 2 week crash course in filling out…[Read more]

Its a sad fact of life…[Read more]

ATO wrote:
If you have to replace something identifiable as a separate item of capital equipment (such as a complete fence or building, a stove, kitchen cupboards or a…[Read more]

the thought of paying 4mil in tax makes my stomach turn, I’m sure it does yours also. As terry said, you will need a good accountant to come up with a good plan. If its difficult to get a recommendation for one, then pick 3 from the phone book.. even if 2 of them waste your time and 1 of them saves you 1% CGT thats a win right?

I hate…[Read more]

Based on your info, my best guess is an annual net loss of around $31k to $33k. Considering 70% of that loss will be applied to your husband’s taxable income, and 30% will be applied to your own, your tax savings will be between $9k and $10k.

There’s a great online calculator for that…[Read more]

Quote:
If you could not move in because the dwelling was being rented to someone, you are not…[Read more]

You still need to lodge a tax return showing your rental income and expenses, which will result in a negative taxable income.

Re: working, it’s certainly a can of worms. There’s a number of implications to earning both Australian income and “Foreign Source Income”, too many to mention here. Long story short, its unlikely that your…[Read more]

I’m not sure of the rules elsewhere, but here in WA… prospective buyers (accompanied by the owners agent) do have the right to “reasonable access”. If I flatly refuse access, with no good reason, a magistrate will order I provide access for say, 1 hour every tuesday afternoon or something.

Certainly they have to ask me before they…[Read more]

Not the same agency, cant proove it, and about 4 weeks.

IMO, it doesnt matter whether the agent knew, they are after all, just the owner’s agent, making a contract on the owner’s behalf. If the owner knew and the agent didnt, that’s “innocent misrepresentation”… enough to rescind a contract.

I dont expect you to take my word for it.. so I’ll refer you to Ormiston’s…[Read more]

Your right on all counts..

you can claim interest, rates, borrowing costs & depreciation.

you cant claim the costs of repairs, however you can depreciate those costs which would be considered to be an improvement. Discerning between repairs and improvements can be tricky.. the ato website will be helpful there (believe it or…[Read more]

Paint is a tricky one.. According to the ATO the answer is “no”, because you painted before the property was rented.

That said, if the painting was only part of a range of activities which you carried out, and said activites could be seen to have…[Read more]

yes but its not as easy as it might seem at face value and your accountant wont be happy about it.. you’ll end up paying

Plummer wrote:
If the…[Read more]

as are any renovations you’ve done prior to the property being rented, its just that they need to be depreciated rather than claimed in full in the year of expense.

But you dont need to depreciate the antennae. That said, I have no idea why, but they’re usually considered to be owned by the tenant, ie: the tennant…[Read more]

but if I wasn’t me I’d say:
No its not legal to ask them, but if they do it then it’s a legal document (or will appear so anyway).

That said.. if its an improvement then the date wont matter so much because the cost will be depreciated during the time the property is rented…[Read more]

To claim the extension, you simply elect to do so when the CGT event occurs, and prepare your capital gain calcs accordingly.

There’s some really good info…[Read more]

sorry.. i didnt explain…[Read more]