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Hi Magic, The 'HECS' that is deducted from your pay is just extra tax withheld from your salary (& it is grouped in with the rest of the tax withheld) - the actual paying down of the HECS debt doesn't occur until your tax return is processed by the ATO. The amount that is paid off your HECS...

I agree with Terryw's calculation. The ATO helpline is the last place I'd go for tax advice!

Your renovation costs whilst it has been your PPOR can be added to the cost base. Valuation at the date you moved in is not applicable in this instance - only if it was your PPOR first and then IP. The Capital Gain is just apportioned over the time it was an IP (7yrs of 11)

Hi BMan, terryw is correct here - you need to get a valuation done when changing a property from ppor to IP but not the other way around.

An appraisal or valuation would only be acceptable if it was PPOR first and then an IP. If it is an IP first & then PPOR (as in this instance); then when the property is sold in the future any gain will be apportioned based on the period it was an IP.

If it an IP from the start (even just for a few months - but let's assume a yr in the example below) & then you move in there is no point getting a valuation - this is only available if it is PPOR first then becomes IP. If it cost $400k today and in 10 years it is worth $1m, then the capital...

20 to 25k is correct for your income. Is the IP negatively geared? How old is the building? Have you had a capital allowances report done for it? At your top tax rate you are paying 39.5c in the $1, which means that for each tax deductible $1 you spend you only get 39.5c back (some...

Pauly If you were to refinance the loan now and take the $300k to do whatever you like with it (assuming a bank would let you do it), then there would be no tax payable. Tax would only be payable when you realise the gain on the IP by selling it. Let’s use a few more examples…. IP...

You could do this but there would be no benefit as the outcome would be the same - no interest expense for property B. So the problem would still be whether you can claim a tax deduction for the interest on the original loan for property A against the rental income for property B. Original...

6 year rule only applies to PPOR - not applicable for a block of land Income according to ordinary concepts means it is added onto your assessable income - so the profit from the sale would be taxed at your marginal tax rate. CGT & 50% discount would have meant only half of the profit was...

Have had this same issue with some of our clients, ATO's stance is that they are swamped and it is taking up to 30 days to process some refunds. This doesn't mean that they are looking any closer at these returns

A hundred or so of our clients have received similar letters, nothing to worry about. As Mry stated you would've got it because you are outside the ATO Benchmarks or it's the first time you've claimed a particular deduction in your tax return.

Thanks Dazz, I was hoping you'd post a reply.

Thanks for the quick reply Saber, In regards to point 2 we wouldn't be planning on refusing the renewal if they took up the option but if they missed the timeframe in which they are meant to renew then we would.

We are currently in the process of purchasing our first CIP and have a couple of queries that we would like your opinions on. Have had a look through a lot of old posts and haven't found anything similar. We will also be discussing each of them with a Commercial Property Lawyer. 1) The...