Category «Rental Property – General»

Selling newly constructed property to spouse

Question I am a “mum & dad” type developer and have just purchased another block of land to construct next property (duplex). I have built and sold a couple of properties previously and thus captured as ‘conducting a business’, with sole trader gst registration, BAS, margin schemes etc.My spouse is looking to invest in property …

Tax residency of a NZ-incorprated company where the director is tax resident in Australia

Question I live in Australia and am a tax resident of Australia (having migrated here from New Zealand in 2012). I own a NZ-incorporated company that invests in rental property in the NZ market only. It currently owns a single rental property that is managed by a NZ-based property manager.Questions:1. Can you confirm that given …

Mixed property development

Question – I purchased an investment property in Jan 2012 for $576K with an interest only Loan(A) of approx. 530K with a plan to develop 2 or 3 units and sub divide for investment purposes– It has been rented out 100% of the time up until it was demolished in June 2014– I am currently …

Using the Margin scheme for GST on a development

Question Hi Julia,We are purchasing land with a house on it in Victoria which we are going to develop ie. demolish house and build 3 units to then sell.We are purchasing from a non registered GST seller. We are wanting to use the margin scheme for calculating GST when we sell. My question is what …

setting up a company, family trust and subsidiary company for investment properties and assets

Question I’m looking at the possibility of setting up a company name ‘WM Mayer Pty Ltd’ which would become the trustee company for a family trust – ‘WM Mayer Family Trust’ – primarily for the purposes of investing (properties, shares, ETFs etc).I bought my current two properties in Mackay:Monash Way, Ooralea in August 2012 (initially …

Rental property becoming residence

Question I can find a lot of articles on the situation where a person turns their current home into a rental after purchasing a new property resulting in the loan being non tax deductable.Our situation is the opposite. We want to move into our rental and make our current home the new rental – so …

GST

Question HiI am looking at purchasing a commercial shop, which is currently empty, and residential premises (2 units), which are upstairs, for approximately $1.3m, in a trust structure. They are on the same title.Is GST payable on purchase? That is, is it already included in the $1.3m? Is GST payable on the commercial premises only?The …

Follow up Granny Flat Question

Question Thank you for your response to my granny flat question last year (see below).We have now commenced building the granny flay and I am reconsidering whether the granny flat should initially be treated as a secondary dwelling.Our family circumstances are such that it makes sense for my Mum to move in for a period …

Self managed super fund, residential property and GST

Question I own a self managed super fund. The fund purchased land (GST free) 3 years ago and soon after built a residential premises. The property is not being rented, instead it will be held by the fund for 5 more years as an investment then sold to myself (member of the fund). The fund …

Non resident checklist

Question HiI’m looking to go non resident for taxation this coming financial year. Also I need to change accountants but firstly..Is there a checklist of things to do to become non res?Other than ticking the box on the way out of the country.Do i hand in my medicare card/account?Do i de-register my vehicle?Sell shares?I have …