Sorry if this should be in the leagal/accounting section…To me the HELP NEEDED sounded more appropriate..
With time running out before the June end deadline I was wondering if anyone has any ideas..
(PLeeease!!)
After ALL deductions ( some of the posts I searched gave good lists)I still have　＄68,000
assessable Capital Gain.ie $21,383 tax to pay!!!
My accountant has given some options of reducing the above number by $14,000 (my max)for super contributions ..
so that would mean $68,000 – 14000 =54,000
tax payable $16000
but that means I am spending 13k to reduce my tax by 5 k ,right…(albeit using 13k for invest.)
Option 2 mentioned was a tree investment 100% deductable (great-southern)and to invest 50-60k in that…?
Anyone with good or bad experiences with these 100% tax tree projects?Are there any other options to invest in to 100% offset the assessable amount?Please help I’m living overseas which makes everthing a tad harder so I would really appreciate your help..(It’s my first Qestion on the board so go easy….)ThanksThere are various share products available where you can borrow 100% with the ability to prepay interest. Macquarie Bank has a few of these products. If you prepay interest, you may be able to get your taxable income down and thus reduce your capital gains tax payable.
I am not sure about trees, a lot of people have been burned big time by investing in these sorts of products. With the Macquarie product it is 100% capital guarranteed. So if the shares go down your capital is preserved and you stand only to lose the interest paid – but this is partly offset by the tax deductions.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If your interested in tree investments, we did the same thing a few years back and got a 100% tex deduction on our purchase. Were very happy with the whole affair and now 6 or 7 yrs later were getting closer to our investment returns. Try Pawlonia Forrests we were quite impressed by them.
Thanks Terryw and jodieleigh for the replies..
Why,are these 100% offset investments all agricultural?I found trees(various types)wine and truffles! Any preference?Pawlonia,sandalwood,teak?
Also I found a few small sites on Aussie movies to invest in that have A-10 approval…
Anything else anyone knows of?Rumin,
Great situation to be in. The more tax u pay the better off u are.
Living overseas….your tax situation may be different to permanent residents….suggest you seek advice from another accountant.(perhaps a specialist in Xpats)
Any assets ie shares that you could sell for a loss?
Any payments you could make in advance?
Never bought trees but why would the Gov give 100 tax deduction for these? Very High risk I would guess.
Enjoy the profit pay the tax.
hrm
Thanks for the replies…
an update…I decided not to go down the tree route as it would have tied up money for a long time and not offset my tax just deferred .
My accountant made a lot of mistakes but it was my fault not to double check…(although I always thought that’s what you pay a goodone for not to have to research every rule yourself?)
As Terry pointed out the prepaying interest was the best way but as I have an asset line loan my banks’cutoff date had expired to get the paperwork through in time..
The only things left were some necessary repairs and full depreciation reports…
I should have the finally tally of tax to pay soon..and as hmackay so kindly pointed out YES, I should be happy I have money to pay tax on..Hi there, i take it you have had a professional depreciation schedule done on all of your investments?? If not thats first. Secondly we pay about $3k a year for the accountant in sydney and she is wonderful. Mr tax man hasnt seen any money for quite some time.
Get an accountant that is a property investor themselves and you should be right. After all, they want the best return for themseles so would be 110% up to date with everything.Good Luck
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!
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