Monthly archives: May, 2019

Borrowing From The Bank and On Lending to Your Company or Trust

Question Wife borrows against her investment property to lend to husband’s company with a formal loan agreement. Company directly pays the interest on the increased (split) portion of the loan. Should wife account for both the income (repayments) and interest in her tax return or is this some “domestic arrangement” with no tax implications for …

Caught by Div 7A?

Question If a company director takes money out of his company regularly, several times a year, year in year out but repays it before the 30th of June each year, does Div7a apply? Answer No, in fact he has up until the due date for lodgement of the company tax return to repay the amount …

Apportioning CGT Between Granny Flat and House

Question I wrote to Noel Whittaker and he suggested that you might be someone who could assist us. My husband (84) and I (77) are planning to build a “Granny Flat” in our back garden which we intend to move into, as we feel we will need a level one storey villa as we become …

CGT on Inherited Rental/Main Residence

Question Dianne is the executor and beneficiary of Gary’s Will. Gary died on the 5 December 2018 leaving a residential property (“the property”) to Dianne. Dianne seeks advice in relation to the deceased’s estate’s potential liability for Capital Gains Tax following the proposed disposition of the property. The background to the use and ownership of …

Is FIFO from NZ?

Question My wife and I are both Australian citizens (Aussie born) – we moved to NZ last year where we rented a house, put our 2 Aussie kids into a NZ school etc. I FIFO back to Australia for work (spending more than 6 months a year in Aus, 4 weeks on / off) – …