You twice referred to reliance on Rolf's Somersoft comments relating to somebody else's incomplete information and different circumstances.

You also refer to finding a BANTACS article.

You also got some quick, free (but frequently unreliable) advice from the ATO phone line based on anecdotal facts you provide to them.

These are brief…[Read more]

Was this also the year in which the structures were set up ?

If you cart everything to a new accountant, the initial due diligence checking deeds, constitutions, etc. will cost.

Ongoing fees should be a lot lower, depending on your record keeping.

Cheers,

Rob

Hi Terry,The 'notional estate' provisions of NSW FLA must be bordering on constitutional issues unless judges start to elaborate on their reasoning more specifically.The Michael Hutchinson scenario is a prime example of the warning about advisers and promoters who are willing to structure your affairs for a fee.The prime example is a person…[Read more]

jasonlheath wrote:

Terryw wrote:
There are very little ways in which you can protect assets in family law situations. Transferring assets won't help.

Thanks Terry, although that is really disappointing that there is no way to protect myself.

Before you START a relationship, you need to put your assets outside your effective control.That is…[Read more]

The hot water tank assembly with its heating element etc. is an asset by itself.You have replaced the entire asset.i.e. you have scrapped the old one, which is a balancing event. The cost of removal of the old one is part of the old asset cost.You start to depreciate the the cost of the new one over its effective life.So … immediate deduction…[Read more]

Terryw wrote:
Look into adverse possession too. He may be able to make a claim for that part of the land if in continuous occupation for 12 years or so.

Agree with Terry.The first thing I do is get a copy of certificate of title with boundaries, easements etc. plus street block subdivision from council & utility companies if necessary (even…[Read more]

This whole thread neglects to caution against sexually transmitted debt.Get some legal advice regarding asset protection before optimising your tax position.Cheers,Rob

amsaini15 wrote:

Rob G. wrote:
Provided the recoupments from the tenants go directly into the LOC, otherwise you contaminate the loan.Cheers,Rob

Rob G, you mean to say if rent from tenants is going in the LOC, we can continue to pay rental exoenses like council, water, insurance,etc and interest payment of the loan from LOC. ATO does not…[Read more]

amsaini15 wrote:
Thanks Terry.     Just one last quick Question. Tenants pay the Water Usage charges of the Water Bill. If I am paying full Water Bill from LOC but getting Usage charges paid back by Tenants later, will that be still fine with ATO?

Provided the recoupments from the tenants go directly into the LOC, otherwise you contaminate the…[Read more]

Hi Terry,Division 114 is for indexation.Cheers,Rob

Joint tenants are treated for CGT purposes as if they are tenants in common in equal shares (s.108-7).s.128-50 gives deemed transfer and cost base rules.s.115-30(1) item 7 extends the general discount deemed acquisition rules as well.Cheers,Rob

Interest expense would form part of the cost base of a CGT asset, however the cost base is reduced to the extent that the expense is deductible.Costs of searching for a property do not form part of the cost base of a CGT asset. They are also a capital expense and therefore are not deductible.The cost of agent fees are specifically mentioned as…[Read more]

So your Accountant does not want you to claim a dollar deduction because you will have to pay back 50c in 10-20 years time ?Cheers,Rob

Any other property as main residence in another country ?Cheers,Rob

Naremburn123 wrote:
Hi guys, I've just purchased a house in Sydney's west with a granny flat. The property will be cashflow positive. The property is in my name. can I claim the cost of fuel I use driving out there for renovations, rent inspections etc?? Cheers Naremburn

" … just purchased … "" … WILL be cf+ … "Sounds like a lot of…[Read more]

Assets do not have to be sold off as such.Check whether the house has been transferred to a testamentary trust as part of the will. Such a trust can operate for many years.Two things bother me:1) The property is not being rented … the trustee has a duty to maintain and invest the assets to maximise benefits for beneficiaries.2) The trustee's r…[Read more]

Sorry to hear of your brother's sad passing.There are many missing facts, so we could end up speculating which would not help you much.A power of attorney ceases on death.There must have been some formal will or court order to appoint an administrator.It is quite possible that the 'friend' is out of their legal depth rather than fraudulent.…[Read more]

Last time I looked, it was gross income – not taxable income.Only business deductions, or statutory partnership deductions (e.g. share of joint investment property deductions) allowed. Neither individual investment deductions, nor employee deductions allowed !!Better check on this one to see if anything has changed.Cheers,Rob

Figc wrote:
Does this answer my question. Taken from ATO website. Expenses prior to property being available for rent. You can claim expenditure such as interest on loans, local council, water and sewage rates, land taxes and emergency services levy on land on which you have purchased to build a rental property or incurred during renovations to…[Read more]

What is a 'repair', ATO TR 97/23Cheers,Rob