Category: Uncategorized
-
Rental properties and electricity data matching
From the Commissioner… His newest weapon is the data-matching of utility records, like electricity and gas meters, against properties that are claimed to be unoccupied, to test if landlords are telling the truth. “There’s going to be a whole lot of new things,” he said. “So when people say their place wasn’t rented, well, we’ll…
-
The Worst Tax Cheats Are… Salary and Wage Earners by Far!
The Commissioner has started to release “Tax Gaps”. He says a “Tax Gap” is: The tax gap is an estimate of the difference between the amounts the ATO collects and what we would have collected if every taxpayer was fully compliant. Tax gaps exist in all countries to some extent. The gaps are driven by…
-
Capital Loss Rental Property Schedules
I keep getting asked by Tax Depreciation providers if they should do Capital Loss Rental Property Schedules. The answer is almost always no and this is why… Capital Loss Rules Some Tax Depreciation preparers have told me that they are going to provide full tax depreciation schedules for every client, even if they can’t claim…
-
The next idea to avoid Div 7A gets messy
From the ATO website… Lots of people have asked me for years if they can “fix” a UPE from a unit trust to a company that is subject to Div 7A by converting the UPE to an equity investment in the trust by having the UPE replaced with units in the unit trust. What do…
-
When does the new GST withholding on new residential property start…
I have already written about the changes to GST for property developers from 1 July 2018. But everyone is already asking me about the transitional rules. So here is the summary… First, the requirement for the purchaser to withhold 1/11th of the consideration and send it to the ATO directly applies in relation to supplies…
-
What company tax rate should I use?
What Company Tax Rate should I use? 27.5% or 30%? What imputation rate should I use? 27.5% or 30%? Here are my thoughts (and sorry it took me 9 pages to answer the questions)… Company Tax Rates and Imputation
-
Paper on changes to Div 40 depreciation deductions and rental properties
AIQS Nov Tax Depreciation Update This is a paper I wrote to help people work out when they can claim Division 40 depreciation deductions on a rental property. Given that the opposition has agreed to pass the Bill in the Senate I have written it as if it is law so I don’t need to…
-
Property developers get a GST slap…
The Government announced back in the 2017-18 Budget that from 1 July 2018, purchasers of new residential premises or new residential subdivisions would pay the GST on the purchase price directly to the ATO as part of the settlement. This was to stop developers using the GST to fund the next development, rather than paying…
-
What a waste of time…
I know the ATO is famous for wasting others time but what about when they waste their own time… Today (18 October) the ATO released a draft Taxation Ruling (TR 2017/D7) titled “Income tax: when does a company carry on a business within the meaning of section 23AA of the Income Tax Rates Act 1986?”…
-
Not more on rental property depreciation!
Sorry but I keep getting asked about the grandfathering provisions in the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 that relate to claiming Division 40 depreciation on assets in rental properties. So this is the link I can just send to those asking me this question. The Bill states this… 13 Application of amendments (1)…
