Latest Questions – Page 26

Gifting rental property with lifetime interest in rental income

Question I am considering gifting my rental property to my child. My lawyer will draw up the paperwork, obtain valuations, etc.I wish to retain the rental income for living expenses and will pay the rates, insurance, etc. The property is 100% owned.Do I continue to show the income as rental income and claim deductions after …

Is this an investment loan

Question Like many parents I would like to help my son onto the property ladder by contributing 10%-15% of the value of the purchase price. I am however wary of gifting the funds, If my son and his partner split she will be able to claim half the net proceeds from the sale of the …

CGT considerations for development

Question Hi Julia,I own 4 properties in Australia. All of them are in South Australia.Please note that in some cases I have referred to myself as the “Husband” belowBelow are the ownership details for the 4 properties:Property Purchase year Current Mortgage Ownership % Taxable site value (for land tax)A _ Investment Property 2008(before marriage) $125,00050% …

Should we sell or hold?

Question BackgroundWe purchased an old house in 2010 with the intention of demolishing the existing dwelling and building a new duplex. At the time, we intended to retain both of the new townhouses as investment properties. We did not register for GST.Now that the buildings are almost finished, we are undecided on the best course …

Capital Gains

Question I seek an opinion on my Sons liability to pay Capital Gains based on the following facts.My Son is an Australian citizen.My Son occupied his current prime residence in December 2003 and the family lived there till December 2008. That month the family moved to Qatar to housing provided by his employer. His Australian …

CGT and Principal Place of Residence

Question I bought Property 1, and moved into it, on 11 December 2003. The purchase price was $820K.I bought Property 2, with a tenant in place, on 29 October 2004. The purchase price was $320K.I moved out of Property 1 from 17 February 2008 – 30 June 2008, during which it earned income from holiday …

CGT Deceased Estate

Question My Mother inherited a vacant block of land under her sister’s estate. Her sister bought the block of land on 23 June 1992 for $14,000. Her sister’s died on, 20 March 1997, time of death block of land had a market value of $32,000. Helen sold the block of land on 14 June 2013 …

Sub Division

Question I have a trust set (owned 50/50 by 2 trusts)up with the following:1000sqm block – one old house rented out and building strata – new house at the back of the block – rented out – 2 years old.in Geraldton wa.1250sqm block in Frankston South VIC with old house and granny flat. currently rent …

Land purchase with plan to build home on to eventually retire to.

Question My wife and I own our current home, purchased in 1982.We have just purchased a block of land down the coast (May 2013) and paid cash.We plan to build a house on the block within the next 12 months, and will use this as a weekender or for holidays over the next several years. …

Australian tax on sale of UK property

Question BackgroundMy wife and I (dual UK/ Australian citizens) have a house in London which we rent to tenants. We are registered with the UK’s tax authorities and, following interest, expenses and allowances, have had little or no annual tax liability on the property. UK tax Returns are submitted annually.The house has been leased to …