Recent content by taxguy

They're mostly correct, no GST will be applicable and you would get the 50% CGT discount. There are a few caveats - - the units must be rented out (do you really want to live next to your tenants?) - their sole purpose must be generating rental income (for example, you can't start marketing...

I'm not sure how your accountants came to $58,000 in GST payable. Total revenue from the sale of the 2 units would attract GST of $65k, but you would get GST credits on a little less than 2/3 of the build costs, incidentals and legals of, say, $35k leaving net GST payable of approx 30k. This...

Just to clarify - there is a provision which allows you to take the market value at the time a PPOR becomes an IP as your cost base (s 118-192). It doesn't work the other way around, when it's an IP that becomes a PPOR.

The ATO might start asking questions if you tick the box that asks something like "have you refinanced or renegotiated your loan...?". In your case this hasn't happened - you've simply drawn down on the offset account - so you've got nothing to worry about. From what I can recall there's...

There's no provision for using any valuation halfway through the ownership period. The actual law is here (if you can read it): http://law.ato.gov.au/atolaw/view.htm?DocID=PAC/19970038/118-185&PiT=99991231235958 You might be able to "sell" the asset now (say, transfer to spouse) to realise...

Strictly speaking they wouldn't be loans, they're "unpaid present entitlements" and should be accounted for as such, particularly to ensure that any distributions to the corporate beneficiary aren't caught by Division 7A, which deems a "loan" to be an unfranked dividend to the trust (which would...

1. Yes - 2/7 of the gain would be exempt, 5/7 would be taxable. Strictly speaking it should be pro-rated based on the number of days, not years. 2. Unfortunately no - you can't separate out gains made in periods of use as PPOR vs rental. There is a specific formula in the tax law which says...

Yes, turnover does need to be than $75k p.a. before you are required to register for GST. For a "non profit body" the turnover threshold is $150k. It might need to be considered what else gets turned over by the organisation, it all gets added together.

Buying costs such as legals and stamp duty are never deductible outright, they add to the cost base of the property and are subtracted from your eventual capital gain (if any). This applies whether it's a PPOR or an investment. In your case, you might not even get that benefit, if you pay no...

You should be able to calculate the deductible balancing adjustment from the information you have - I get $1494 as an additional deduction this year, assuming the asset was disposed of on 30 June 09 (though it doesn't actually make a difference, if it were earlier you'd just claim more as the...