Category «Rental Property – General»

Deductions for building studio/granny flat

Question We own a 280sqm block with an existing house. We bought this property in January 2011 for $1M.We rented out the property for the first 18 weeks of ownership.The property is now valued at $1.1MWe plan to build a garage with a self-contained apartment above (the studio will have 35sqm living area of a …

Use of previous years rental losses to offset this years net rental gain

Question Sir/Madam,I have had 2 jointly owned investment properties with my wife for over 7 years. We are non residents and have little or no other income in Australia during this period. At the end of 2008-2009 we had net total rental losses of $50,000 and $40,000 respectively. During 2009 – 2010 we had net …

Renting out the home…

Question Hi,From what I understood you don’t have to pay CGT when selling a property that was your main-residence within the last 6 years then you don’t have to pay CGT on it.On another point in the book you write that one has to move into the property as soon as possible.There are 2 cases …

Determination of loan amount for the purposes of interest deductions

Question I purchased my home (main residence) in 1994 at a cost of $207,000. Initially, this home was mortgaged to the Commonwealth Bank for $150,000. In 2000, I converted the mortgage to a Line of Credit (secured by my home) with an initial limit of $250,000. In subsequent years this LoC has been increased to …

gst and margin scheme

Question HiMy wife and I signed up to build a rental property. We signed up to buy land and subsequent house on 28/8/10. At this time I was earning reasonable money.We took possession of house at end July 2011 .To save costs we were doing , or organised tradespeople, ourself to finish house. My work …

bare trust holding asset w/- SMSF one of 2 beneficiaries (to SAVE land tax )

Question The SMSF is good as -the taxpaying vehicle – but very restricted/ cumbersome to administer/operate eg use of asset;borrow;audit.A trust containing a duplex where theres still a discretion as to which of its 2 beneficiaries income or capital upon sale goes to- would not be bound by SMSF rules even though the SMSF is …

Please advise if I should deregister from GST before selling a property and not be treated as in a development business.

Question Am I deemed to be "An investor who is simply realising an asset in the most marketable way". And not a person/business who "acquired a property with the intention of improving it in some way to resell at profit?"Can I deregister from GST and sell my property and be classed as the above investor …

What is the simplest way of managing tax for Australian rental property for Australian expats?

Question My husband and I have been living and working in the Netherlands since September 2008. We are Australian citizens but Australian non-residents for tax purposes. My husband is the sole income earner, and his income is taxed here in the Netherlands. We intend to continue living in the Netherlands for a few years, and …

GST on subdivision

Question Hi JuliaMy first investment property I had been acquired on 24 March 2005 as a block of land (600sq.m) with existing old house built on this land with intention to rent it out for long term.Due its obsolescence this old house required sufficient capital improvement. Then at the end of 2008 I decided to …

GST on sub-division development

Question Hi Julia I have a beach property which is currently rented for holiday rentals (I suppose this is no different to residential rent??) I am not registered for GST and I do not use the property for my personal use. I want to sub divide the property and build 2 units and then continue …