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James is not a qualified accountant

Don't do it: At best you will be in the same tax position as if you had paid the interest yourself. If you are working for a PBI or pulbic hospital then the special concessions available to their employees will be wasteD on this stategy, exempt fringe benefits should be used to pay off...

Rob . Sounds fine that accountants should offer this service gratis. Of course you would not expect them to deprive their children of food or quality time with their parents so it would seem loigical that such a cost should be factored into their billing. Let's see, what would be a fair...

Scott, How about giving us your PBR number

Go to www.bantacs.com.au under freebies have a look at the claimable loans booklet in particular the paragraph startin with it is danerous. Yep that is the one that refers to you. Also in the next few days under out tools section well will be posting a spreadsheet that will help you...

A tax benefit is ok as long as that is not the sole or dominant purpose. Most people spend half their working life trying to pay their home loan off as soon as possible. Just because there is a tax benefit in the arrangement doesn't suddenly make that action a scheme with the sole dominant...

The salary sacrifice arrangement that I used to talk about lasted 15 years before they changed the law, in fact they still haven't. Just announced they will. With both the salary sacrifice arrangement and this redirecting rent to your own home changing the law will have major ramifications so...

This is a private ruling for my client only, you cannot rely on it and the ATO will try to narrow it. It is important that you can prove that the rental will eventually become positively geared. You should apply for your own PBR first.

I have just received a PBR from the ATO agreeing that letting the interest capitalise on a rental property loan and using the rent to pay off your own home is not caught by Part IVA in the circumstances I outlined. Open the flood gates this means my client will be able to shift all her non...

Accountant? Solicitor? doesn't really matter because the only one the ATO is going to come after (with their penalties, interest and years of back tax) is the taxpayer

So if the taxpayer relies on the QS report and the ATO doesn't accept these amounts can the taxpayer sue the QS?

A super fund can still not mortgage any asset it owns the best it can do is enter into an arrangement where a bare trust holds the asset and gives the bank security on limited recourse loan. The superfund then has the right to take over ownership of the asset when the final payment is made on...

Each time the SMSF acquires more of the property it is a CGT event for the other entity. This creates an unnecessary internally generated CGT bill that would not apply if the SMSF simply borrowed the money. Further the asset cannot be borrowed against so leverage is even worse

Are you and your brother registered for GST? Is the land ajoining any of the other properties? Have you been claiming a tax deduction for the rates on it?

Thank you JRC and Ozpert for your contributions and balance. I would just like to add something for Accountants here. I have read a few HDT deeds but as I am not a solicitor should not comment on them, I thought. One in particular to me seemed to fall foul of PBR 65710. So I rang the...

The reason I said that you have got to ask yourself why you entered into a HDT in the first place is because the ruling, in MHO, says that if the deed gives you the flexibility to return some benefit to someone else other than the unit holder (including the ability to redeem units at less than...

From TD 2009/17 Ruling 1. No. Interest on a loan used to settle moneys on trust to benefit the borrower and others cannot be deducted in full under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997). 2. The taxpayer's interest expense can only be deducted to the extent to...

http://www.bantacs.com.au/newsflash.php

If C&N say their PIT is ok with the ATO why haven't they got a product ruling to prove it or at least a PBR

Re XYZ accoutants, when you lodge a trust tax return you have to answer a question on whether it is a hybrid or not! thanks Piston Broke September API will have an article on Hybrids