News

Property development and tax

Property development and tax

September 2, 2019

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO can include whether an agreement to develop and sell land is a “mere realisation” or a disposal either in the course of a business or as part…

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Tax and the kids savings

Tax and the kids’ savings

September 2, 2019

If a child is under the age of 18, and they earn income on their savings account, remember that the ATO considers that the person who “owns” the interest depends on who uses the funds of that account (no matter what type of account it is or the name of the account holder). The ATO…

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CGT exemption on inherited homes

CGT exemption on inherited homes

September 2, 2019

Inheriting a home or a legal interest in one could be the largest windfall gain that many Australians ever experience. From a tax law perspective, when someone dies a capital gain or loss does not apply when a property passes: to the deceased person’s beneficiary to the deceased person’s executor or other legal personal representative…

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SMSF trustees Operating expenses you can deduct

SMSF trustees: Operating expenses you can deduct

September 2, 2019

Operating expenses that are incurred by an SMSF are mostly deductible, however there can be exceptions to the extent that these relate to the gaining of non- assessable income (such as exempt current pension income) or are capital in nature. The following are examples of the types of operating expenses that are typically deductible for…

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Rental property owners Top 10 tips to avoid common mistakes

Rental property owners: Top 10 tips to avoid common mistakes

September 2, 2019

The ATO is reminding rental property owners that each year it sees some fairly common mistakes being made with tax claims, and the outcomes that result, in regard to investment properties. It has therefore released a list of the top 10 stumbles, and how best to avoid them. 1 APPORTIONING EXPENSES AND INCOME FOR CO-OWNED…

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Tax when youre headed overseas

Tax when you’re headed overseas

August 7, 2019

Most people’s “to-do” list when they are planning a trip overseas will likely include items such as travel insurance, phone chargers or taking photos of their passport — but probably the last thing on anyone’s minds will be their likely tax situation before, during or after that trip-of-a-lifetime. There are a few simple considerations, taken…

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What you need to know about trust distribution resolutions

What you need to know about trust distribution resolutions

August 7, 2019

An essential starting point for consideration of trust income and how that income is to be distributed is to look at the trust deed. This very central document sets out the rules and expectations for the governance and operation of the trust and the powers that can be exercised by the trustee. Although it can…

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Is it just a hobby or are you in business

Keeping busy: but is it just a hobby, or are you in business?

August 7, 2019

It is important to understand the differences between a hobby and a business for tax, insurance and legal purposes among other things. For one thing, there will be certain tax and other obligations that start once you are in business. However it’s a myth that there is a dollar threshold to be in a business…

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Small businesses need to get active to pay less tax

Small businesses need to get “active” to pay less tax

August 7, 2019

For small business owners who are disposing of assets that have risen in value during the time they have owned and used them in their business, accessing one or more of the available small business capital gains tax (CGT) concessions can greatly reduce any consequent tax liability. Indeed, many small business owners find they can…

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The small business income tax offset

The small business income tax offset

August 7, 2019

The small business income tax offset (also known as the unincorporated small business tax discount) can reduce the tax a sole trader business pays by up to $1,000 each year. The offset is worked out on the proportion of tax payable on business income. To be eligible, a taxpayer must be carrying on a small…

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