Joanne Black, a property developer, bought land in May 2015 (Post GST Start 1st July 2000) for $300,000 and constructed a house on it. In March 2016, she sold the house and land for $1,100,000. Joanne was registered for GST and incurred the following costs: Land at cost $300,000 (including all
This month we look at – the $20,000 instant asset write-off and how it may apply to employees what types of legal expenses are allowable as tax deductions Why setup a partnership? Facts and foibles we provide a series of short videos on buying, maintaining and selling an investment property
A client inherited a property from her late parents which was used as their Principal Home. The parent’s family home has been transferred to her as part of the estate. The two year period is now coming due as such she needs to determine what are the capital gains issue
A humble home with a hefty price tag. This plain Jane house at 65 Woodbury St, North Rocks, sold under the hammer this year for $1.17 million — $210,000 over the reserve. IT WAS once an exclusive club, but membership
Why are valuations in property transactions important for tax? There are times when a valuation is necessary for tax purposes. For example, let’s say that Mr Smith transfers his rental property to his daughter Mary for no consideration. The tax law, specifically the CGT rules, requires that the transfer be
The Margin Scheme came about so those in the business of selling real property only paid GST on the Buy / Sell Margin – if they weren’t able to claim GST when they purchased the real property now that they are on selling. The purchaser however cannot then claim any GST
If an Australian resident moves overseas and becomes a non-residence for taxation purposes, they can still access the Principal Place of Residence (PPR) exemption for Capital Gains Tax (CGT) indefinitely if they don’t rent out their PPR in Australia. Provided you have moved into the property as your main residence
After pulling down an old house on an inner city block, 4 town houses were built, then sold to another developer during construction – one of the GST traps! John & Mary bought a rental property in the year 2000, however are now considering demolishing the house to build a
Umbrella Accountants – Property Accountants Brisbane John & Mary bought a rental property in the year 2000, however, are now considering demolishing the house to build a new duplex. The old rental property was built in the late 1980s, is tired and causing lots of repairs and maintenance costs, and
Umbrella Accountants – Property Accountants Brisbane If you rent out your principal place of residence that was acquired after the 20th September 1985, there may be a CGT issue to consider! Properties purchased before 20th September 1985 will not be subject to CGT regardless if rented out. If your principal
Umbrella Accountants – Property Accountants Brisbane Renovations completed after 1985 can be deemed to be a separate asset to the original property, and hence CGT will be applicable. Example John & Mary purchased a residential property in 1984 for $195K to use as their primary residence. In 2000 they moved
Many employees may have a residential rental property (or even a portfolio of such properties). Most of them would pay for the expenses relating to those properties out of their after-tax income. However, by salary sacrificing those expenses (i.e., by getting their employer to pay, or reimburse them, for the
