Recent content by Mry

As I mentioned in another thread, there is a product called the GPS logbook. I suggest people who need to keep a logbook but hate doing so (like me) use that instead since it tracks your location via GPS, prints out the log in an ATO compliant format and (this is the best part) you can keep it...

Just to clarify, the FBT concession for multiple electronic devices applies from 1 April 2016. Must wait 10 months for that to kick in. The former rule allowed you to claim only the business use of those items, so just about every employer stopped allowing employees from salary sacrificing for...

Sole trader and partnership yes. Companies and trusts, no. Its a little worrying to see people considering that these benefits apply to rental property owners. None of the budget changes affect rental property taxation, unless of course you are one of those very rare people who operate a...

:Facepalm: Sorry, was assuming it was a discretionary trust, just saw it was a unit trust.

Generally speaking, the low interest rates at the moment make the cashflow considerations on buying a trust vs an individual minor. If interest rates go up, that could change. I did the calculations for someone today on a rental property at $400,000 at 100% leverage with an interest rate of...

Good point. My first boss when I started accounting believed that if you move into a rental property just before sale, the entire thing was capital gains tax free. Lots of misconceptions out there.

I assume you mean discretionary / family trust. There are many types. Taxable loss in trust - Income (Rent) - Expenses with no other adjustments. Tax loss will most likely be carried forward. Taxable profit in trust - after the losses are claimed in full (if any), cashflow wise it would no...

Just to point out Paul, he said so the one residence rule doesn't apply here, though it is worth noting as a caveat. G.Field, too many issues to cover there. It depends on your treatment of the properties during the development phase, what you intend to do with the other unit, if you...

The ATO has a reasonable description of the tests here. To answer / not answer your question, it is a question of fact rather than time. https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Real-estate/Is-the-dwelling-your-main-residence-/ The only time is an issue is if it was...

I would see that scenario as somewhat similar benefit wise as to what I proposed, only that Company 3 is a trustee of the discretionary trust. You can ask your accountant if there is a problem having you as a trustee of the discretionary trust that owns the shares in Company 2 and see what he...

My general rule of thumb is to use a company with a DT as the shareholder for developments because (a) asset protection, and you can shut them down after the development is finished at some point and (b) the profit is ordinary income, not capital gains so you don't have to worry about losing out...

In Queensland, trusts have their own land tax threshold, and a corporate trustee can provide the asset protection. Capital gains at worst would be 24.5% for anyone in receipt of them. Since trusts can distribute the tax free elements out and a company cannot, I'd still be sticking with trusts...

Too many unknowns to make a proper quote. Are they in trusts, companies etc or in their own name? If they bought it in their own name, did they realise by IP #10 that land tax kinda sucks (unless they are all NT properties)? What sort of record keeping? Do previous years need to be checked...

Commercially speaking, most developments are prepared using a company (or a trust with a corporate trustee) in the event that some sort of claim for building defects comes up in the future, the claim is limited to the company and stops there (unless they find a way to sue you personally). The...

When you inherit an investment property that was purchased past 19 September 1985 (when CGT was introduced), you inherit it at the deceased's cost base. If it was a PPOR up to the date of death, or it was purchased by the deceased prior to the 20 Sept 1985, you inherit it at the market value at...