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Hi all, We have an 850m2 block of land which we are currently looking to see if it will be feasible and profitable to subdivide and build 3 town houses. We are at the point where we have costed most things except the construction of the actual houses. I have read through the many posts on this...

The ATO have a tax ruling on this: Letting of property to relatives 13. Where property is let to relatives the essential question for decision is whether the arrangements are consistent with normal commercial practices in this area. If they are, the owner of the property would be treated...

Rixter, when you draw down from the equity from IP1 (and IP2 ,3 ,4 in each subsequent year) what's the strategy used to meet the increased interest payments on the drawn down equity? Correct me if I'm wrong but the amount borrowed against IP1 after the 10 year cycle would be for private...

Would it be worthwhile getting a depreciation schedule for a property that is approximately 30 years old that hasn't had a recent renovation? I can't imagine there being much to depreciate to justify the cost of getting a depreciating schedule for such an old property.

Stirling, The trust itself isn't entitled to the CGT discount, it is the beneficiaries that are entitled. If the properties were originally acquired by the trust for long term investment and not for development or resale, and that intention never changed, then upon disposal of the the property...

I'll give it a crack... When you demolished the house, the actual house itself (separate from the land) is considered a CGT asset. A CGT event occurs when you destroy the house and you make a CGT loss on the destruction of the house. To simplify matters, lets not take this into account for the...

Lets suppose that you buy an apartment 'off the plan' and put down the 10% deposit. What happens if the developer goes bust before the apartments get built? Do you get your 10% deposit back? I'm assuming that you would because the 10% deposit is placed into the vendor's solicitors/agent's trust...

Pushka, I wouldn't be too worried about it. This is what will most likely happen: 1. Your tax agent will lodge an amended tax return; 2. The ATO will charge you general interest charge on the tax shortfall, approximately 15% on the amount of the shortfall 3. The ATO will consider penalties...

Yes you can rent the IP to your company at Market rates. In your personal tax returns you will have to include the rent income received from your company. However, from the perspective of your company, the rent payments are not deductible because the rent payments would be regarded as private...

Fully deductible. Aslong as the interest is incurred in producing assessable income, in this case rent, then you can fully deduct the interest regardless of what type of bank account it is. It is the purpose of the expenditure that is relevant.

I may be wrong, so double check, but from what I understand, you can only deduct an amount for superannuation contributions if you (as the employer) make a contribution on behalf of your employee to a complying superannuation fund. I doubt the fund the in the UK would be classified as a...

the landscaping would definitely fall under capital and therefore not deductible straight away. The roof could be classified as either, depending on whether it was a repair (deductible) or you're simply trying to make it look better (capital)

This is not correct. HECS/HELP etc is not deductible because you're essentially already getting a deduction because of the concessions. That is, a HECS sponsored course is significantly cheaper than a full fee paying course. Have a read of ATO ID 2002/463 Self-education expenses - PELS...

Alternatively you can use the margin scheme whereby you charge GST on the difference between the cost and sale price (the margin). However, you have to meet certain conditions before you can apply the margin scheme.

Jackinbox, The sale of new residential premises is generally a taxable supply and you will have to charge GST on the sale. There are a few exceptions however and you should look at...

Ian, private rulings are free and it will generally take the ATO 28 days to reply to your question unless they require additional information from you. It is therefore suggested that when you submit your request for a private ruling, that you include all the information necessary for the ATO to...

That is correct. Non-residents are taxed on all Australian source income. Rent from an Australian property would therefore be regarded as Australian source income. You may have to ammend some of ur US tax returns and lodge an Australian Tax return for years were rent income was not declared

I would have to agree with Kristine. The area is definitely changing and springvale is not what it used to be. 6 months ago, those townhouses were selling for $420k, and now they are selling for $469k. The town houses sell very quickly and they are already into stage 5. This shows that there...

The figures that I was 'throwing around' were from the calculators from realestate.com.au. You're right, 8% of 250k is 20,000 per annum, however thats just interest. Most people who buy a PPOR pay interest and principal. So at an interest rate of 8% paying interest + principal, it comes to...

I'm going to bite.... Being a recent FHB, i'm going to have to agree with Nth Brisbanite. Basically it has come to the point where first home buyers need 2 incomes to purchase a home. My partner and I have recently purchased a house out in the suburbs, 1 hour drive from the city and it is no...