Forum Replies Created
I have spoke to the land & infrastructure today and understood what’s involve in subdividing and obtaining the permits.
What I like to confirm is, will the newly developed home be subject to Capital Gains Tax and the existing property retains it’s CGT exemption as it has been my principal place of resident?
Please help[
]I wish I have people I can trust that would inspect the property for me.
Often as soon as the agent finds out that you are out of town, you are less than a potential buyer[]
i had a look at a block of flats in my local area, went and had a look and they werent bad, needed about 50k for a reno on the place. the RE agent asked what i thought they were worth, i then asked how much is he asking, 6 x 1 bedrooms and 1 x 2 beddy, vendor asking 800k. i just about laughed out aloud which didnt impress him. although the numbers were ok, the place was that old there was next to nothing left to depreciate.
told the RE agent this along with expected interest rate rise (this was saturday) that i was taking all the risk for no return, and he said theres no way interest rates were going to rise again, it was a good set of units blah blah blah. i put an offer in for 300k, i dont think he was impressed. i will wait till begining of january then put in another offer.Nice try[
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liviwell,
what you do is have all your bills etc sorted out, this includes your depreciation schedule, rent coming in etc. get a good accountant and they fill out a form called a 221D.
this is basically asking permission to the ATO, that instead of getting your losses at tax time, they be reduced from your income tax fortnightly. you will have to have all paperwork to do it, and any changes ie interest rate rise etc you have to put in another claim. you are also at a higher risk to being audited by the ATO. so you really do need to have your s#$t together.Hi Shaunwalker
Thanks for the details but why would I have net rental losses after reading Steve McKnight’s book []plus the penalty is too great if I get it wrong, not worth it. Just a small timing difference. Not worth paying an accountant to save on a bit of bank interest. That’s my view.“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
[/quote]I like the quote, very meaningful and cute. But I think there is every reason to be happy. You don’t have to be stupid to be happy…[
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]plus the penalty is too great if I get it wrong, not worth it. Just a small timing difference. Not worth paying an accountant to save on a bit of bank interest. That’s my view.
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