[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

September 1, 2003 - 4:30 am

i’ve not read steve’s book,

but I disagree with not claiming depreciation because of the time value of money….the taxation of inflation. $100,000 now is worth much less than after 10,20,30 years. Even if you had to sell and pay CGT, you are give increase cashflow now, in the present.

Also I follow the principle when I buy a good asset that’s producing a good cashflow, the time to sell the asset is never. Warren Buffet works by this principle.

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 11:32 pm

Yes you can,

you can do it several ways, the commissioner would allow

1. u estimate the cost of construction and you can claim the costs. Some costs are fixtures and fittings (40) and some are capital (43)

2. hire a quantity surveyor and he’ll estimate the costs for you

3. use an architect and he’ll estimate the costs for you

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 11:15 am

Alf

Div 43 is when you claim building depreciation
Div 40 is when you claim furniture

eg. You paid $100,000 for property
u sell for $150,000
Div 43 – u claim $10,000 of building depreciation
Div 40 – u claim $5,000 of fixture and fittings

When u sell, u have to do balancing adjustment of div 40 – lets assume its $3000

You assessable CGT is $50,000 + $10,000 + $3000
total is $63,000
50% discount $31,500 (assuming ur on 48.5% tax)
your tax is $15,277

now there are also other implications like GST,
if you are liable for GST, then u will have to pay $13,636 GST on the sale.

so like i said depending on your circumstances, if GST is applicable then your total tax will be
$28,913 (sux huh)

but most people will not have to pay GST, but depends on your situation

if your accountant does’nt tell u this, get a new accountant.
My charter accountant did’nt know about this, I had to learn it myself. I now have a new accountant who still does’nt know about this, I have to tell him what to do! go figure?

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 10:54 am

Did u claim any depreciation on the property?

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 10:52 am

You can only claim the book if you already have an investment property
you cannot claim it if u use it to buy an IP

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 10:29 am

40% Shares (90% Blue Chips, 10% speculative)
10% Managed Funds
40% Property (residential + commercial)
10% Businesses (private)

These give good cashflows for further acquisitions

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 10:21 am

Alf,

that’s the simplified version
but there are so many variables
need to know what your situation is
what entity did you use to buy this asset

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 30, 2003 - 9:54 am

Alf,

if you claim Division 43, then the amount you claim will be equal the amount reduced by your cost base. this is assuming your asset was purchased after September 1985

if you claim division 40, then there will be a balancing adjustment from the time you dispose of the asset

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 29, 2003 - 6:24 am

M1in12

can you tell me where i can find this information please cause it looks like the information i have may be erroneous

thanks

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 7:32 am

Tilly,

in regards to MVA, compulsory third party covers all damages to people whom you injury. the insurance company pays for all that. the one you should look out for is people who work for you at your home and slip and fall and break their neck. if they’re not covered and you’re not covered, then you’ll be in deep S#%t

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 7:00 am

Westan

ru sure?

I spoke to this tax lawyer and he told me a change in trustees will trigger a CGT event. The trustee is the owners of the asset and held in trust for the trust. If you change trustees, the ato will require a re-evaluation of the trust assets and wack a CGT on that?

that’s what I’ve been told anyway

I’ll have to look this up now

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 6:47 am

Yep, you can do that for five years only though

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 6:46 am

I managed to find 2 in sydney, but it was not easy though

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 6:42 am

Age is never a barrier,

‘just do it’ – Nike

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 6:40 am

If you change trustees, you will trigger a CGT event, I think its E1 or something like that
Also there will also be stamp duty issue on change of trustee
ergo you have to decide now before who will become the trustee.

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 6:38 am

westan,

why do u want to put your home in a family trust
and when you say a family trust, what do you mean by family trust?

And yes, my accountancy fees are quite heafty, but the tax savings and asset protection are worth it

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 5:47 am

y

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 5:13 am

for tax purposes, you should not purchase appreciating assets under a corporate structure

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 3:49 am

buying things in your own name could be parlous

u should be concerned about litigation and tax consequences

look at the structure that suits u

unfortunately in this complex society we live in, buying assets in your own name is parlous

[puissanceMember@puissanceJoin Date: 2003Post Count: 72]

August 28, 2003 - 1:30 am

don’t forget to include GST in your cashflow