Did your contract with the tenant include provisions for TV reception? Even if not the fact that a TV aerial where there when they moved in may mean you should repair the problem. How much would it cost you if they moved out and is it worth considering paying $400 to prevent this?

You have to distinguish the 2. Income tax uses the term ‘main residence’ whereas the land tax legislation refers to ‘principle place of residence’ (in NSW anyway). Different rules resulting in different outcomes.

The main residence/PPOR is basically the place you reside in as your home.

Those items listed may be used as evidence, but just…[Read more]

very unlikely insurance will cover things like that.

How much would it cost to fix? What would this do to your positive (almost) cashflow? Would the buyer reduce the price by the amount it would cost to fix?

5 years possibly
credit for GST you pay
Perhaps
If you don’t sell, if you are not classed as an enterprise, if you are not required to register for GST

It doesn’t really matter what entity owns the property.

You need specific tax advice.

If you retain a property you will not have to pay GST as you won’t be selling. but you won’t be able to claim input tax credits either.

If you sell a new residential property you will need to remit 1/11th of the price to the ATO if:
you are registered or required to be resisted for GST,
you are carrying on an enterprise
etc

You should speak to a lawyer to set up a trust – an account will just give you an off the shelf template with the names filled in and cannot give you advice in relation to it other than commonwealth tax asepcts.

They would have to work out the cost base – which would be roughly market value now less the value of the land when they bought it and assocaited costs – they could use expenses such as rates, interest etc to reduce the CGT.

The CGT event will be at the date of transfer and any CGT will go on their income for that year. If they did the transfer…[Read more]

Legals
CGT
stamp duty
and this could effect the pension.
Also asset protection issues.
deductibility of interest issues

The main residence CGT exemption won’t apply as it will be vacant land.
Could you let them keep it and leave it to your in their will?

To work out the cost base we need to know the costs for the 5 elements described under Section 110-25 of the ITAA 1997 which are:

1. Money paid or required to be paid for the asset.

2. Incidental costs of acquiring the asset, or costs in relation to the CGT event, for example, stamp duty, legal fees, tax advice, and so on.

3. Non capital costs…[Read more]

Each would pay tax

So the body corporate is selling off part of the common property? Assuming CGT applies – which it may not – then the usual principles would apply. Work out the cost base and the gain minis the cost base is the taxable income. It would be a company so no 50% discount. Would any profits be passed on to the owners?

Strata titling in itself is not a…[Read more]

Normally you wouldn’t want to buy in a company name because of the tax rate. But there can be benefits especially in NSW as a company will get a separate land tax threshold. A company could also retain income so cap the tax at 30%, but this may be better done with a trust and a bucket company.

Keep in mind that franking credits are decreased by…[Read more]

Use excel

If you want to spend money try Property Investment Analysis from somersoft.

If she is the shareholder the company could pay dividends and she could pay the extra tax, if any, and then buy in her own name.

The company could lend her money to buy, but then Div7A would apply and she would need to consider the interest rate and terms carefully.

The company could lend another company money to buy – but then if she lives in…[Read more]

She needs to get legal advice.

The money doesn’t belong to her it belongs to the company so there are various legal and taxation consequences to using it, even if she doesn’t breach corporations law.

Yes, CBA will

Yes they can. But there are various tax consequences including stamp duty and possibly land tax. They will be subject to Australian tax laws as well as the tax laws of their country of residence.

How much higher would you be paying on fixed rates compared to variable?
How many rate rises would it take for you to be ahead?

‘lend’ not ‘borrow’.

Firstmac have been around for years. not a lender that I have ever used in the past 10 years, but they used to be good for servicing. Not sure if this is still the case or not.