Category: Uncategorized
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Monday Ramblings – Debt Forgiveness again – but with UPEs
Last week I wrote about claiming a capital loss for forgiving a debt. The follow up question is always about an unpaid present entitlement. As the beneficiary has included the UPE in their assessable income it seems like the conditions for a bad debt deduction under section 25-35 have been met. But the Commissioner has…
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Penalised for being ethical – JobKeeper voluntary repayments
The Commissioner has just thrown a spanner at the brilliant marketing people who think every business should repay their JobKeeper payment as their businesses continued to thrive… Even if you give it back, the Commissioner will tax you on it and may not give you a deduction. Let that sink in. You get $100k in…
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Monday Ramblings – Can I get a CGT loss when I forgive a debt?
I know this is the second question I get asked – the first is can I get a revenue deduction which is “NO… COME ON MAN!” unless you are a money lender (section 8-1) or the debt has been treated as income and this is a bad debt (section 25-35) – but this is the…
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Monday Ramblings – Rental Property Tax Depreciation Schedules and second hand assets
Since 1 July 2017, there have been specific rules for deductions for decline in value of certain second-hand depreciating assets in a residential rental property under Division 40 (section 40-27). These rules sates that if a taxpayer uses these second hand assets to produce rental income from residential rental property (not a commercial property), they…
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Allocation of professional firm profits – Important new guideline
Finally the Commissioner answered the question of how much of the profits of a professional firm that we can allocate to entities other than the owner of the firm. Background In 2015 the Commissioner released a document called “Assessing the risk: allocation of profits within professional firms guidelines”. This allowed us to send 50% of the…
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Monday Ramblings… What is the Imputation Rate?
To work out the Company Tax Rate we need to know the aggregated turnover for the entire year and the base rate passive income for the entire year – See a rambling of mine a month a go called “Sunday Ramblings – Company Tax Rates are Messy”… However, Companies can pay franked dividends to their…
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Monday Ramblings – More on Travel and accomodation deductions
Travel and accommodation costs #5 – Can I claim a deduction for my food while traveling Draft Taxation Ruling TR 2021/D1 Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances To be able to claim a deduction for food while travelling, you first need stays away…
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Travel and accommodation costs #4 – Transport expenses when travelling significant distances or multiple offices
Here in Canberra we have lots of people who love living in Canberra, but work in Sydney. They drive up, stay there two or three days and drive back… and they ALWAYS want to claim a deduction or the travel. What does the Commissioner say about this???? The mere fact that an employee lives a…
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Travel and accommodation costs #3 – On call and standby arrangements
In Taxation Ruling TR 2021/1 Income tax: when are deductions allowed for employees’ transport expenses? the Commissioner considers deductions for those on call or on standby. This may not be the most relevant of all the issues in this Ruling but as I seem to disappoint lots of people when I have advised on these issues, so…
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Travel and accommodation costs #2 – Travel from home to work
We always start with the position that travel between home and work is not deductible… And then the arguments begin. So, to end these arguments, the Commissioner states in TR 2021/1 Income tax: when are deductions allowed for employees’ transport expenses? that the usual position that the cost of travel between home and the employee’s regular place…
