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  1. R

    2 on one title, 1 IP 1PPOR scenario

    TR 2000/2 accepts that a mixed purpose loan can be split such that the investment portion retains its interest deductibility. Where the loans are truly split into separate borrowings (caution: some banks only notionally split) then an offset could be set up against the PPOR loan. Just bear...
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    Depreciation Report

    You don't have to use the same depreciation method as the vendor provided you are dealing at arm's length. For depreciating assets, you will use the cost of acquiring those assets. Usually a contract is silent on these details, but the vendor has provided you with the written down value which...
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    Borrowing Costs?

    Is there any state that still charges stamp duty on financial products?
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    Question about stamp duty and depreciation

    Stamp duty cannot be deducted. Nor can it be depreciated under the capital works write-off because it does not relate to original construction cost. It will form part if the cost base for CGT.
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    A question on director loans for pty ltd companies

    FBT: Whether a loan is in respect of employment (as opposed to merely being incidental) is a question of fact. If there has been no history of paying salary or benefits as remuneration, but rather dividends or appropriations of capital then it may be in respect the shareholder relationship...
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    A question on director loans for pty ltd companies

    There is no "minimum time". It is purely a "reasonable person" test, that on the facts it would be reasonable to assume that a loan was repaid prior to lodgement date in connection with the new loan issued after that date. The beauty with legislation that requires the Commissioner to form an...
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    A question on director loans for pty ltd companies

    Back to back loans are deemed not to have been "repaid" by lodgement date. Where it has not been converted to a complying loan by lodgement date then the amount will be deemed an unfranked dividend. Ignoring the temporary deficit levy, the effective tax rate for the deemed dividend could...
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    Another Captial GainsTax question

    The construction of a dwelling would not usually be treated as a separate CGT asset from the land. However, the short term purchase, construction and sale could represent profits of a business developer or a speculator and be treated as ordinary income. Therefore your 50% general CGT...
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    Minimizing cgt

    If an active asset of his business or leased to an associate that uses as an active asset then the small business CGT concessions might be available. Depends upon a few conditions.
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    GST on renting out of a residential property

    Hope you are not relying on the 6 year absence rule to access the CGT main residence exemption.
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    Calculating Loan Interest Deduction

    No. Slight terminology issue. The tax deduction is the interest expense $500. The effective saving after tax to you by the fact that the amount is deductible is based on your marginal tax rate, i.e. $500 x 37% = $1850.
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    Couple of tricky tax questions.

    Possibly black hole expenditure on both accounts. They are capital costs, but they might not even be included in the cost base of the property ! 1) May not form part of second element of cost because it is not incidental to acquisition or disposal of the asset. Question is whether...
  13. R

    SMSF Rules

    Just work as a casual employee on the farm for a month after settlement as part of the business handover to satisfy the work test in FY2016.
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    SMSF Rules

    The biggest risk is that the contract fails to settle. e.g. CGT event A1 is taken never to have happened if the sale falls through on 1 July 2015 (Note 1 to s.104-10(3)). Then any SMSF contributions prior to settlement may breach the contribution caps. Any forfeited deposit or...
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    SMSF Rules

    You appear to have "capital proceeds" this year as well as the CGT event to which the small business concessions can apply. CGT event A1 occurs when the contract/agreement is made, s.104-10(3)(a). Therefore it appears that the opportunity to disregard any capital gain starts at the date...
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    6 months rent payment up front - in which tax year is it deemed as income?

    Yes, but ATO ID 2003/526 concerns a private individual letting their investment property to a relative. It applies the same reasoning. On this basis, the Commissioner appears to be changing his stance to now applying the Arthur Murray principle to passive investors.
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    6 months rent payment up front - in which tax year is it deemed as income?

    I am unaware of any judicial precedent for passive rental income. 1) Arthur Murray involved a business that was required to recognise income for services on an accruals basis, 2) The money was held in a suspense account until the services were performed; and 3) There was a history of...
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    6 months rent payment up front - in which tax year is it deemed as income?

    My understanding ... The estate agent is normally acting as agent for the landlord. Whilst an agent may owe fiduciary duties to the principal, it would normally fall far short of being a trustee for the landlord. The agent does not hold legal title to the property, nor the income derived...
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    6 months rent payment up front - in which tax year is it deemed as income?

    Section 6-5(4) ITAA97 Constructive receipt. No deferral for cash basis passive income.
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    6 months rent payment up front - in which tax year is it deemed as income?

    More likely a bare trust. Transparent for tax purposes.