Categories
Income Tax Planning Stuff

Moving from cash to accruals

Since the Henderson Case it has been clear that there is only one appropriate way to return income for a year – either cash or accruals. TR 98/1 covers which one is correct for each year. But what happens to your debtors when in year one you were correctly on cash and in year two […]

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Income Tax Part IVA Planning Stuff Rulings

Part IVA and partnerships of discretionary trusts

The most annoying habit of the Commissioner is to let everyone do something for years and then to finally try to close it down. Take the Commissioner’s announcement on 16 December 2009 that an unpaid present entitlement from a trust to a corporate beneficiary is a loan to which Division 7A applies. So 12 years […]

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Income Tax Part IVA Planning Stuff

Part IVA applies to small businesses

I don’t get that so many small business advisors think Part IVA can not apply to their clients. Yes it does not happen often but if it does your business is on the line. And here is where it is most likely to apply… You just read my post below and want to inject income […]

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Article Income Tax

Solar panels and tax – How many people have this wrong???

0010IP_Blue_Journal_Aug (Mansell) By the way, after writing this article I found that I had been placed on the world’s largest “climate denial” database. Now I new thought a tax article could make me politically incorrect?

Categories
Income Tax Planning Stuff

Claiming a deduction for stamp duty?

In the Australian Capital Territory, for a rental property you can claim the stamp duty as a deduction – even though the Henry Review (which I had the misfortune of spend 6 months working on) wanted to remove this anomaly. Why? It’s a lease and not an ownership of all land in the ACT But, […]

Categories
Article Income Tax

Lease Fit Out Costs and Division 40…

The two questions here are: 1. For various items included in a fit out, can a taxpayer claim a deduction under Division 40? 2. If they can claim a deduction under Division 40 what is the effective life? 3. If they cannot claim a deduction under Division 40 can they claim a deduction under Division […]