All Investment property posts

Re: Refinancing Investment loans

KylieS — Thu, 27 Feb 2020 02:30:15 GMT

Hi .

There is no problem with you consolidating the loans. However, if the amount of the loan for the rental property increases you will not be able to claim the increased interest.

Thanks

KylieS

Capital Gains Tax

nzbigglesau — Thu, 27 Feb 2020 01:31:39 GMT

Hi,

We inherited an investment property in 1995. What is the ato procedure for assessing the cost base? Also if their value is lower than my esitmate what steps should I take to resolve the difference? The cost base that was suggested to me (by family) is twice what I was expecting.

Thanks

Mark

Main Residence Exemption

Agni — Wed, 26 Feb 2020 22:57:36 GMT

Hi All

I have a residential property where I had been living till 2015, and since then I have let out the property from October 2015. Now I wish to dispose it and claim the CGT Main Residence Exemption. My question is : when is the last date that I can dispose off the property?

Many Thanks.

Re: Refinance interest from paid off property

Miamia — Wed, 26 Feb 2020 00:05:03 GMT

Thank you!

Re: Refinance interest from paid off property

Glenn4802 — Tue, 25 Feb 2020 23:14:29 GMT

When you borrow money, the interest is only deductible if the funds are used for an income producing purpose.

If your rental property is used as security for a loan to buy your family home (without an inome producing purpose), the interest would not be deductible.

Even if you used the funds for an income producing purpose e.g. to buy shares, the interest deduction would be claimed against the dividend income rather than the rental income.

Refinance interest from paid off property

Miamia — Tue, 25 Feb 2020 18:20:15 GMT

Hello, I have a question, is I pay off my mortgage for my current property, in the future, if I use this property to get mortatge from bank again, can the interest be used for deduction? Say if this property generates rental income of 20k and the interest is 10k and depreciation is 5k, how much tax do I need to pay?

Thank you!

Depreciating assets

Alba — Tue, 25 Feb 2020 08:32:16 GMT

Hello Community,

I have a question in regards to purchasing a depreciating item, for instance if I buy an item of $400, can I claim only $300 immediate deduction, because is less than $300 and not claiming the other $100, rather than depreciating the item for its useful life. Any help with this would be very appreciated.

Re: Cgt for foreign residents

macfanboy — Tue, 25 Feb 2020 00:31:20 GMT

Could you clarify the first question, even I sell after July 2020 as foreign resident, the cgt is still calculated based on the market value when rented out?

No, unfortunately, it is not

A little light reading for you

https://taxbanter.com.au/banter-blog/draconian-cgt-mre-changes-become-a-reality/

If you can't sell it before it, it may pay to leave it and come back in the future when you are once more considered to be an Australian resident for tax purposes.

Yes, I am a Tax professional and I don't work for the ATO.

Re: Cgt for foreign residents

Miamia — Tue, 25 Feb 2020 00:06:11 GMT

Sure thanks! You are so kind to answer all my questions!

Could you clarify the first question, even I sell after July 2020 as foreign resident, the cgt is still calculated based on the market value when rented out?

I will surely engage a tax agent if I sell or transfer the property, are you a tax agent or ATO staff? Can I engage you? Thank you!

Re: Cgt for foreign residents

macfanboy — Tue, 25 Feb 2020 00:00:39 GMT

will I be taxed on the capital gain based on the original purchase price, or the market value when it was first rented out?

Market Value when it was first rented out.

And how many months will a valuation report valid for? I mean if I am going to transfer title on June when is the earliest time I can get the valuation report? Can I use the same report for stamp duty evaluation for CGT?

Sorry but no idea, a Market valuation should be done as per

Preferably not by the same agent that will sell your home.

Also, seek advice from a Tax professional as they could save you thousands as CGT calc is quite complex and incorrectly determining it is easy.

Cgt for foreign residents

Miamia — Mon, 24 Feb 2020 19:05:57 GMT

I know that from July 2020, foreign residents will no longer be able to apply 6-year exemption rule, so if I sell or transfer my former home in Sydney, will I be taxed on the capital gain based on the original purchase price, or the market value when it was first rented out?

And how many months will a valuation report valid for? I mean if I am going to transer title on June, when is the earliest time I can get the valuation report? Can I use the same report for stamp duty evaluation for cgt?

Thank you so much!

Re: Deductibility of interest on loan for rental property

KylieS — Mon, 24 Feb 2020 01:05:42 GMT

Hi ,

Thanks for your patience.

There are situations where the deductible proportion of the loan can still continue after the property has sold.

However, t hese situations generally involve circumstances where you find that you cannot prevent the loan continuing, such as sale proceeds being less than the outstanding loan.

If the funds from sale of the property were applied to pay out your home or private loans instead of the rental property related loan for example, then the rental property loan interest would not be deductible.

Also, if the monies were applied against a mixed use loan and the applied funds equated to the original borrowing amount as adjusted by repayments then it would seem to be unlikely that that there would remain a deductible component to the mixed use loan.

KylieS

Refinancing Investment loans

Kazi — Sun, 23 Feb 2020 03:29:39 GMT

Hi ATO,

I and my wife have two properties jointly owned. One of which is owner occupied and the other has been used as investment. We receive rental income from the investment property. We have four mortgaged loans against those propeties as different figures and bank interest rates. To my best knowledge none of the loans specifies which properties they are atached to. We are thinking of refinancing the four loans to convert into two representing two properties to receive better interest rates.

Is it allowed in ATO's perspective to combine any two loans (out of 4) into one against the investment property and declare the interest payments in our future tax returns?

Re: Investment becoming PPOR

macfanboy — Fri, 21 Feb 2020 22:28:38 GMT

The 6-year rule only works if you originally lived in the property first. It can't be classified as your PPOR if you didn't originally live in there.

You can only have 1 PPOR at a time so there will be a crossover period.

Generally, it's best to keep the highest profit-making property as your PPOR to reduce CGT.

Re: Investment becoming PPOR

HM1 — Fri, 21 Feb 2020 09:45:53 GMT

Yes we held another property as PPOR but rented it out under 6 year rule. Planning to move back into it soon, which resets 6 year rule, then move out again and rent it while we move south to live in our other investment property to make as our new PPOR and live in it till it sells in new financial year

Re: 6 year rule

macfanboy — Fri, 21 Feb 2020 02:07:46 GMT

so if I sell before July I can still treat the Sydney property as the main residence and pay no CGT, even I own an overseas property which I am living in, right?

Correct.

Does this just mean I will not be able to treat the oversea property as the main residence during the overlapped period, right?

Correct

Re: 6 year rule

Miamia — Fri, 21 Feb 2020 01:06:46 GMT

Hi thank you, so if I sell before July I can still treat the sydney property as main residency and pay no cgt, even I own an overseas property which I am living in, right? Does this just mean I will not be able to treat the oversea property as main residency during the overlapped period, right?

Can anyone from ATO certify the answer? Thank you so much! I am trying to be a good citizen here!

Re: Investment becoming PPOR

macfanboy — Fri, 21 Feb 2020 00:07:00 GMT

Did you own any other property whilst holding the investment property?

Re: Cgt on selling house that was investment then my PPOR

macfanboy — Fri, 21 Feb 2020 00:05:53 GMT

Yes, there would be CGT and the way you would calculate it would be quite complex.

Best to consult a Tax Professional.

There are many considerations to take into consideration.

I would make sure that I keep a record of:

Dates Bought, sold, days rented, days lived in and days owned.

Purchasing costs, selling costs.

"3rd Element Costs" (holding costs when you moved back in like interest, rates, insurance etc.

Re: 6 year rule

macfanboy — Thu, 20 Feb 2020 23:52:09 GMT

No, you can't because you are no longer considered to be an Australian Resident for tax purposes (if you sell it after June 30 2020).

If you sell it before June 30, 2020, then yes you can.

Cgt on selling house that was investment then my PPOR

HM1 — Thu, 20 Feb 2020 23:02:00 GMT

Hi all, after selling a house is any cgt to be paid on a house that is increased value that was rented out, but then became my PPOR? If so, how to work out how much?

Investment becoming PPOR

HM1 — Thu, 20 Feb 2020 22:55:04 GMT

I’ve got an investment property that’s been rented out a while and since increased in value. How do we change PPOR from our current house to the investment property? How long do we need to live in it before it becomes our PPOR?

Re: 6 year rule

Miamia — Thu, 20 Feb 2020 21:42:35 GMT

Thanks

could anyone answer my other question, can I claim the 6 year rule on the sydney property while living in a purchased home overseas?

Re: 6 year rule

macfanboy — Thu, 20 Feb 2020 21:27:43 GMT

Make sure that you sell it before 30 June 2020 or you will lose main resident exemption as you are no longer considered to be an Australian resident for tax purposes.

This will mean that you will have to pay CGT.

Re: Buying a property when married

TaxedoMask — Thu, 20 Feb 2020 06:38:02 GMT

Yes tax follows ownership.

You would only own 50% if you get divorced (jokes - family courts are a crapshoot).

Buying a property when married

Mabel — Thu, 20 Feb 2020 06:26:09 GMT

Can my husband buy a property on his name and claim 100 per cent of the rental income?
Mabel

6 year rule

Miamia — Thu, 20 Feb 2020 05:49:38 GMT

Hello, I have a question, I am a PR of australia, I purchased a home in Sydney in 2013, lived there for two years then moved overseas for a job, I purchased a home here and rented out the Sydney Propertt, but I am not an PR or citizen of this country, I would like to come back to Australia but not sure when.

If I sell the sydney property now, can I treat it as my main residence to avoid the cgt? The examples provided on ATO website seems to allow us to nominate one of our two main residences at a time, regardless which one we live in, but just want to make sure! Thanks

Re: Redraw loan specifics for investment purposes

Howdy — Wed, 19 Feb 2020 06:35:55 GMT

Ok thanks for your help and the links

Re: Deductibility of interest on loan for rental property

NateH — Wed, 19 Feb 2020 02:27:52 GMT

Hi ,

We are going to check on this one and get back you with an answer.

Thanks, NateH

Re: Redraw loan specifics for investment purposes

TaxedoMask — Tue, 18 Feb 2020 22:33:46 GMT

3. the tainting is with respect to B as the redraw come out of that account. If you take out 30k - use 20k for business and 10k for personal, then its 10k / Balance of B = non-deductible portion. (rather than 10k of 30k)

You then have a problem with repayments. There was the old TR 98/22. repayments are then split between the deductible and non-deductible portion. It's an absolute nightmare (though its been some time since I've had to look into it). You have to resort to Excel.

ATO have an early engagement process - see here. You wont get "ATO certified" responses all the time as they have a specific criteria, especially with more - lets just say - complex issues.

On the accountant front, either you do it or your accountant does it - if you mix redraw with offset - chances are you're gonna have a bad time.

Re: Redraw loan specifics for investment purposes

Howdy — Tue, 18 Feb 2020 11:58:30 GMT

Hi TaxedoMask (nice name btw), thanks for replying.

1. Yes that's why I'm asking. I'd prefer an offset so I don't need the headache of tracking these kind of things, but if I'm overthinking this then a redraw would be sufficient (and much cheaper) in my case.

2. Thanks, that's what I was wondering.

3. Not sure I understand what you mean. I gave the pool example in terms of wondering whether the redraw 'taints' the offset funds (like you mentioned in 2) in that if I pull them out for personal purposes how would they (or even I) know which dollar came out of the original offset funds (i.e. ok for personal use) vs the redraw funds (not ok for personal use).

Ok, how do I contact them 'formally'? I was hoping for an 'ATO Certified' response here as this is the only way I've seen where they give answers. Or am I mistaken? I already tried calling them before but they just told me they can't help and to get an accountant. I didn't want to write an essay justifying why I don't want an accountant but basically I'm comfortable doing my own taxes and only end up having one question a year that I'm not sure about, so im not getting an accountant just for one question - especially as I somehow doubt they'd sit there tracking each source / use and balance of my offset and redraw accounts, and if they don't its still on my head at the end of the day anyway, so I'm back to square one regardless ... which is why I asked if anyone here is an 'ATO certifier' or a tax accountant who knows that one question, that'd be awesome.

Thanks again =]

Re: Tax matter relating to refinancing property

Mark1 — Tue, 18 Feb 2020 09:39:31 GMT

1. the interest would not be deductable as it is used to purchase a home for yourself.

https://www.ato.gov.au/General/Property/In-detail/Rental-properties/Top-10-tips-to-help-rental-property-owners/#Tip6Claiminginterestonyourloan

2. the valuation would be used for CGT

https://www.ato.gov.au/general/capital-gains-tax/your-home-and-other-real-estate/your-main-residence/using-your-home-to-produce-income/#Homefirstusedtoproduceincome

This is my personal view; I’m an ATO employee who chooses to help out here in my own time

Re: Termite Barrier

TaxedoMask — Tue, 18 Feb 2020 05:34:40 GMT

My instinctive response based on my very limited understanding of termite barriers is that these are physically installed in the building and are effective a part of the building (fixture rather than chattel). Thus, deductible under Division 43 - Capital works deductions.

I would say that this is different to "pest control" services which are immediately deductible.

Termite Barrier

SD4815 — Tue, 18 Feb 2020 05:04:13 GMT

Can you claim immediately a termite barrier installed in a rental property?. I'm a little confused some private rulings say yes and others say no. Some say its capital - does that mean you can claim it under depreciation or building write off rules or it just sits on capital account. Would appreciate any thoughts

Re: CGT and 6 years absence rule

MarkA — Tue, 18 Feb 2020 04:39:58 GMT

Welcome to the community! We love to see a first post. (:

Based on what you have said above the normal Main Residence Exemptions should apply as long as your are under the 6 year absence rule and have now once again become an Australian Resident for Tax Purposes.

Check out this link too. It talks to your query. See Foreign residents and main residence exemption.

Note: This change only applies if you are NOT an Australian resident for tax purposes at the time of the disposal (when you sign the contract to sell the property).

We look forward to your next post.

Kind regards

MarkA

Re: New rental airconditioner replacement

MarkA — Tue, 18 Feb 2020 00:28:45 GMT

Good to see your post. Thankyou.

This particular question was answered last year in our community also. I have provided a link to help out. See Air Conditioning Installation - Deduction or Lump Sum? You will see it talks to any additional costs you incur in transporting and installing the assets being included. It also includes a link to our website/rental guide for further information.

Thanks again for your query.

MarkA

Re: Redraw loan specifics for investment purposes

TaxedoMask — Tue, 18 Feb 2020 00:11:52 GMT

1. Using funds in offset is not a "redraw" for tax purposes - thats why people use it.

2. Redraw from B into offset account A - I'd argue still deductible (makes sense as rate of A > B as is your case).
using it for holiday = via withdraw from offset = purpose of redraw becomes private = "tainted".

3. the pool issue is for mortgage B not A or the amount withdrawn.

If you want certainty, you can either engage with the ATO formally or get professional tax advice - this is a forum after all.

Redraw loan specifics for investment purposes

Howdy — Mon, 17 Feb 2020 09:46:50 GMT

Hi, I'd really appreciate the ATO or an accountant to answer this. I know that if you withdraw from a redraw, the purpose must be for investment purposes to be able to claim interest expense on tax. However I can't find information which provides further definition on how redraw funds are "used".

Background: In considering a redraw vs offset for a loan. An offset account looks better for flexibility and simplicity but the redraws tend to have better rates so I'm looking into them. Once my funds go in a mortgage, they don't usually come back out, so I don't need an offset for a transaction account, but I want to know just in case, what sort of a headache this could potentially become if I need to redraw later on.

Consider this hyothetical scenario: two mortgages - lets say both are over investment properties.
Mortgage A: interest @4%p.a - has an Extra $20k sitting in an offset account.
Mortgage B: interest @3%p.a. - has an Extra $30k of payments which are available for redraw.
Ideally one could redraw the $30k from B to put into A (so now A has $50k, and B has none extra) to save money on the rate differential and both are for income producing purposes so all interest is tax deductable. I.e. you "used" the money from B's redraw to go to A, which is for an investment purpose (so all is good atm). But because A is an offset, then what happens if, say you later want to take out the funds from A to say go on a $50k holiday. Were the redraw funds already "used up" as soon as they got there, or are they still in the process of being "used"? Which of these, if any, is true, as they all sound a bit strange to me:

- 1) As soon as A gets the $30k redraw funds, it is Instantly "used" for income-producing investment purposes, it's fulfilled it's obligations as a redraw, and you can now do whatever you want with the funds as they are now classified as offset funds (i.e. take out the 50k tomorow) and still claim all interest expenses on both mortgages A and B on tax. Effectively the redraw gets 'freed' through the offset account. I doubt this one as it sounds a bit similar to a 'Wash-Sale'. Alternatively, if this does not occur immediately, how long do the funds have to live there before they are 'freed', a month, 3 months, a year?

-2) The 30k from B's redraw is 'forever tainted' and you must at all times keep a Minimum 'parcel' of $30k in A's offset before things start geting classified as non-income producing. i.e. I can take out 20k from the offset for the holiday but if I take out 50k I'll have to do some calculations on what is tax deductable as the 30k from the redraw won't be.

-3) The redraw funds have created a 'uniform mixed pool' in A in the ratio of 2:3 as soon as they went in. So that even if I take out only 10k from A's offset, it's assumed some came from the offset, and some came from the redraw, and i'll have to keep tabs of this and do a heap of calculations to work out how much is tax deductable. (I won't even ask how new funds will be treated in this scanario...).

Any genuine help is appreciated (people please don't reply with 'ask an accounant'). Thanks in advance =]

Re: Deductions for the costs of holding vacant land and off-the-plan purchase

PeterW — Mon, 17 Feb 2020 04:33:33 GMT

Thanks, Chris

There's nothing specific about off-the-plan purchases in any ATO guidance I could find, so I wanted to check.

It's evident from the previous post (Is interest on loan deductible when used to finance a deposit on a rental unit off the plan?) that the ATO accepts interest on an off-the-plan purchase may be deductible if the purpose of buying the property is to generate assessable income and that purpose does not change.

I assume the MyTax advice and TR 2004/4 will be updated for TaxTime 2020 to reflect the change to the law (s26-102 ITAA 1997).

Cheers, PeterW

Re: Deductions for the costs of holding vacant land and off-the-plan purchase

ChrisR — Mon, 17 Feb 2020 03:52:10 GMT

Thanks for your post.

When you enter a contract to purchase an off-the-plan property, you're not purchasing vacant land. For more information about deductions for vacant land and what constitutes vacant land, have a look at our website.

A similar question has been asked in our Community recently. You can check out the thread here: Is interest on loan deductible when used to finance a deposit on a rental unit off the plan?

If you would like to discuss this is in more detail, you may want to request an early engagement discussion. You can find out more about our early engagement for advice service on our website.

Hope this helps.

Thanks,

ChrisR

Tax matter relating to refinancing property

wonderabouttax — Mon, 17 Feb 2020 02:00:06 GMT

Currently living in own property, seeing increase in value over the last many years. Plan to refinance and put forward the extra money to purchase a new home to live in, and turn existing home to investment property. Assume I am able to refinance and draw $100,000 from existing home, and use it as downpayment to purchase a new home.

My questions are:

1. Can I do the above? Is the interest on $100,000 redraw still considered tax-deductable?

2. From CGT perspective, if I get a valuation report of existing home, prior to turning it into investment property, will CGT based on this valuation or the price I paid when first bought the property?

Thanks.

Re: Deductibility of interest on loan for rental property

DuffSovietUnion — Sun, 16 Feb 2020 10:26:15 GMT

ETA: The original overdraft for the property was about $120K and thanks to private spending, the loan is now about $200K. Therefore, I think 60% of the interest (120/200) is claimable for the time the property was being rented. I'm not so sure for the period after the property was sold, but I think the property portion is still claimable.

Deductibility of interest on loan for rental property

DuffSovietUnion — Sun, 16 Feb 2020 03:46:52 GMT

Hi,

I have a question about the deductibility of interest on an investment property.

I have a client who took out a mortgage loan in 2014 for an investment property used to produce rental income. The loan was split between a home loan account and an equity saver account, which was used as a chequing account, mainly for private expenses. Interest was incurred on this account against the overdraft.

In 2017, she consolidated the equity saver / chequing account into a loan account, which is not used other than to make repayments against.

In 2018, she sold the property and the proceeds were used to pay out the original home loan, but she still has the equity saver / loan account (and will for a while).

Is she allowed to claim interest deductions on the equity saver / home loan account even though most expenditure on the account was private? The original overdraft and loan was for investment purposes.

Also, can she claim an interest deduction for this account in 2019 even though there is no rental income to claim it against?

Thank you.

Re: CAPITAL GAINS

MCA_Accountants — Sat, 15 Feb 2020 10:16:57 GMT

Would need more info, but given the complexity here I'd suggest you see yoiur accountant and get proper advise and let them run through all the figures

Re: Capital Gains Property - Change of Residency Cost Base?

pam1972 — Fri, 14 Feb 2020 05:58:42 GMT

Thankyou

Re: CGT on property lived in then rented

fambo — Fri, 14 Feb 2020 04:14:22 GMT

I thought that was the case. Thanks for confirming.

CGT and 6 years absence rule

Ana1 — Fri, 14 Feb 2020 04:08:31 GMT

In light with the CGT application for expats applied since December 2019: I am an Australian citizen currently working in Europe. I am a non-resident for tax purpose. I own and have been renting out my house for 4 years alreay. I will return to Australia and become a resident for tax purpose by the end of this year. I am planning to live in my house first and then sell it within 6 months since my return to Australia. Question: Will I be exempt from the CGT on a basis that I will be an Australian resident for tax purpose, selling my own house which was rented out for no more than 6 years?

Re: CGT on property lived in then rented

macfanboy — Fri, 14 Feb 2020 03:43:40 GMT

Sorry, I had to readjust my previous response.

Yes the Initial Cost base will be the value when you first started to rent it out $850,000

Re: CGT on property lived in then rented

fambo — Fri, 14 Feb 2020 03:37:51 GMT

Thanks for response

So lets say I nominate my house as priciple place of residence.

If I sell the apartment at $900,000 is the realised gain based on the initial purchase price at 460K or the accreditated CGT valuation report that was conducted in 2015 - $850,000?

Thanks

Re: Capital loss on main residence

TaxGuru — Fri, 14 Feb 2020 02:50:38 GMT

no you can ignore - refer to section 118.100 of ITAA 1997

Re: claiming deduction for interest on stamp duty

ChrisR — Fri, 14 Feb 2020 01:26:44 GMT

Thanks for your question.

When you take out a loan to buy a rental property, you can generally claim a deduction for all of the interest charged on that loan as long as the property is being rented out or is genuinely available for rent in the income year you claim the deduction.

For more information about interest expenses and rental expenses you can claim now, have a look at our website.

When you purchase a rental property, money can be borrowed to pay for a number of expenses associated with the property purchase including:

the cost of the property itself
legal expenses (solicitor and conveyance fees)
lenders mortgage insurance (LMI)
stamp duty (transfer of title)

These are all legitimate expenses that you can borrow money to pay for. As long as the expenses are associated with the rental property, 100% of the interest is claimable as a deduction. Of course, that doesn't mean that you can claim a deduction for the stamp duty itself as that is considered a capital expense.

For more information about rental expenses you can't claim, check out our website.

You wouldn't be able to claim 100% of the interest if you took out a loan to purchase a rental property as well as say a motor vehicle. This is because a portion of the loan would be for private purposes. In turn, you would need to apportion the interest and only claim the part that relates to the rental property.

Hope this helps.

Thanks,

ChrisR

Re: Capital loss on main residence

macfanboy — Fri, 14 Feb 2020 00:12:48 GMT

Yes you must ignore it.

Re: CGT on property lived in then rented

macfanboy — Fri, 14 Feb 2020 03:41:58 GMT

It all really depends on whether you want to continue to nominate the apartment as you "Principal Place of residence" or not.

You can for up to 6 years after moving out as you initially lived in it first.

If you do then there will be no Capital Gains Tax on the apartment but this will mean that your "House" will be liable for Capital Gains Tax from 2015 until you sell the apartment.

It all depends on which scenario will yield you with the least Capital Gains Tax.

If you don't nominate the "apartment" then the cost base will start at $850,000 the value when you first started to rent it out.

Capital Gains Tax is quite complicated and there are many ways to lessen this by adding to the cost base various buying/selling costs but you must also deduct any capital works depreciation that you have claimed.

Best to seek advice from a Tax Professional as this could end up saving you a lot of money.

You can also reduce the Capital Gains Tax by using the roll-over" feature of concessional super contributions and claiming them as tax deductions but that is another story........

Re: Capital Gains Property - Change of Residency Cost Base?

TaxedoMask — Thu, 13 Feb 2020 23:37:04 GMT

Based on my reading - no. Any costs (for it to be added to the cost base) would need to be incurred after the date you become resident & the property becomes taxable australian property.

Re: Capital Gains Property - Change of Residency Cost Base?

pam1972 — Thu, 13 Feb 2020 08:57:09 GMT

Hello TaxedoMask

Thanks for the reply.

My main query is whether other cost elements such as aquisition costs (i.e. stamp duty, legals etc) and capital improvements are added to the market price (of the UK property) to get the cost base?

Can you please confirm?

Thanks

CGT on property lived in then rented

fambo — Thu, 13 Feb 2020 04:33:33 GMT

My wife and I purchased an apartment in 2009 for $460,000. Between 2009 - 2015 we were owner occupiers of this apartment.

In 2015 we decided to purchase a house. As such, we turned the apartment into an investment property and began renting it out. The house became our principle place of residence. We also had the apartment evaluated in 2015 (before moving out) and it was valued at $850,000.

We now want to sell the apartment but want to know what the CGT liability will be? For instance if we sell the apartment at $900,000 is the CGT based on the gain we made on the initial purchase price of 460,000 when we were owner occupiers?

Or is it the valuation price of 850,000 as of 2015 when it became an investment property ?

Thanks!

Re: New rental airconditioner replacement

Garead — Thu, 13 Feb 2020 03:24:00 GMT

Thanks you for this response. I have a follow up question if I can.

When getting the aircoditioner replaced there are often costs such as plumber/electricain costs. How does one claim for thes? For example:

Cost for electrician to determine fault and quote for repairs
1. (recommendation is replacement of unit)
Purchase cost of new air conditioning unit
Cost for electrician or plumber to remove old unit and install new
Disposal costs of old unit

From your response provided I understand that #2 above will be considdered a depreciating asset and depreciated over time, how would the costs for #'s 1, 3 & 4 be treated? Can they be claimed in the year they were incurred or would they be wrapped up in the asset being depreciated over time?

Thank you in advance for your help

Michael

Re: Capital loss on main residence

TaxGuru — Thu, 13 Feb 2020 03:07:53 GMT

CGT applies to real estate. You can ignore the CGT event if it was your main resident but it doesn't say you must.

Re: Capital loss on main residence

wonka5 — Thu, 13 Feb 2020 03:00:22 GMT

I can't see how you can claim a tax loss on a non income producing asset? If it's not taxable, there is also no loss implications.

Capital loss on main residence

TaxGuru — Thu, 13 Feb 2020 02:24:17 GMT

If someone has a main residence which they predict will sell at a loss can they claim the capital loss against any other capital gains?

Section 118.1 ITAA1997 states you can ignore a capital loss not that you must ignore it.

The ATO also doesn't specify disallowing claiming capital losses from main residence.

Re: Capital Gains Property - Change of Residency Cost Base?

TaxedoMask — Wed, 12 Feb 2020 23:36:08 GMT

My bad - misread that part.

Get a market valuation report. The market value of the UK property at the date you became an Australian tax resident (in 2010) is the first element cost base of the property.

see s855-45

Re: Loan from New Zealand family trust

KylieS — Wed, 12 Feb 2020 06:04:17 GMT

Hi ,

Thanks for your patience.

The interest would be deductible because the purpose of the loan is for the investment property.

If you are a resident of Australia there is a requirement for withholding tax paid to the ATO out of interest payments to a non-resident.

In thiscase the family trust would not need to declare any income for Australian tax purposes. Otherwise, under the Australia New Zealand Double Taxation agreement, where the payer is a resident of Australia, the recipient would be deriving interest

Thanks

KylieS

Deductions for the costs of holding vacant land and off-the-plan purchase

PeterW — Wed, 12 Feb 2020 03:38:37 GMT

It appears the new law which restricts the deductibility of the costs of holding vacant land (s26-102 ITAA 1997) does not apply to off-the-plan purchases as, under such contracts, the purchaser does not acquire an interest in vacant land – but is purchasing a contractual right to have a property built (QC 60249). Therefore, deductions for interest on a loan for an off-the-plan purchase are available where the property is being acquired to derive rental income (TR 2004/4 & Steele's case).

Can you please confirm?

Re: Capital Gains Property - Change of Residency Cost Base?

pam1972 — Wed, 12 Feb 2020 03:10:20 GMT

Hello

Thank-you for your reply.

I just wanted to confirm that the property is located in the United Kingdom and was purchased when I was a non-resident.

In this case can you please confirm what cost elements form the cost base?

Thanks

Re: CGT on non-strata titled duplex

ChrisR — Wed, 12 Feb 2020 01:44:26 GMT

is correct. This one doe sound a little tricky. The link that has provided you is definitely a good place to start. You may also want to check out the CGT exemptions for inherited dwellings page as it will likely answer part of your question.

Regarding your original one third share of the property, from what you have advised it sounds like the property was purchased before 20 September 1985. This usually means that CGT won't apply (at least to that share of the property). Have a look at the timing of acquisition page for more information.

After reading the information on our website, if you're still not sure you can request an early engagement discussion with us. For more information about early engagement for advice, refer to our website.

Hope this helps.

Thanks,

ChrisR

CAPITAL GAINS

SUH2525 — Wed, 12 Feb 2020 01:41:41 GMT

Hi All, I purchased a property in Sydney just prior to leaving for overseas on a posting in April 1996. I rented it out for the 3 years I was absent from Australia. Upon returning in April 1999, I moved into the property and lived there for 8 years until April 2007. I have since rented this property as I had to move to Melbourne where I lease a property. Since April 2007 I have rented the property, apart from a short period of approx 3 months when the property was between tenancies. Over the periods of renting the property, I have incurred losses each year including but not limited to mortgage interest, body corporate fees, council and water rates etc etc etc. I am now considering in selling the property and wonder what my exposure to capital gains tax will be. Can anyone assist in advising what the rulings are?

Re: Property

ChrisR — Tue, 11 Feb 2020 07:52:20 GMT

Thanks for your question.

is correct. Being an investment property, CGT will likely apply. Of course, it will ultimately depend on the facts of your situation.

You can check out the transferring real estate to family or friends page on our website for more information. After you have read that page, check out some of the other links on the left hand side.

You will also need to get in touch with the land titles office in your state or territory regarding stamp/transfer duty requirements.

Hope this helps.

Thanks,

ChrisR

Re: rental property repair

VJ — Tue, 11 Feb 2020 06:19:47 GMT

Ok great, that makes sense. Many thanks.

Re: rental property repair

macfanboy — Tue, 11 Feb 2020 06:01:39 GMT

If the repairs are due to tenant damage or wear and tear, during it was rented then these will be deductible.

Any other costs i.e. interest, council rates will not be deductible as expenses but will be claimable as 3rd element costs to decrease capital gains tax when selling. This is because it was not genuinely available for rent.

As long as the rental income was received in the income year that the repairs were done then they will be deductible.

Re: rental property repair

VJ — Tue, 11 Feb 2020 05:30:02 GMT

I have the same question, and I'm still not totally clear from the responses provided so far. During the period that a property is unavailable for rent while you undertake repairs, I understand that you're saying that the cost of repairs in this period are deductible even if it's not genuinely availabe for rent (due to the repairs being undertaken). But it's still not clear to me if you are saying that the costs of interest, rates etc. that you incur during this time are also deductible. Are they considered costs of 'maintaining' the property during this period and are therefore deductible also?

I'm also interested to know if there are any limits on the length of this repair period, or is it only a requirement that the property generated rental income in the same financial year that repair costs were incurred? In my case for a number of reasons (including the person doing the repairs suffering health issues and my own personal circumstances) the repairs dragged on for nearly 12 months. Some rental income was received in each of the two financial years covered by this period (before and after the repairs), and there was always an intention to rent the property out again.

Many thanks.

Re: Improvements for Tenant in Commercial Property

NateH — Tue, 11 Feb 2020 03:15:03 GMT

Hi ,

Due to the complexity of this one we'll have to get you to write in to our early engagement team. This way we get all the details and can give you tailored advice.

Thanks, NateH

claiming deduction for interest on stamp duty

guyf — Tue, 11 Feb 2020 00:43:17 GMT

I know I can claim tax deductions for Interest paid on a loan used to purchase an investment property.

If I also borrow money for the aquisition costs, such as stamp duty, is this also deductable?

E.g. Property costs $500k, plus stamp duty of $30K. If i borrow $530k to pay for these, can I claim interest for full $530k loan, or only the $500k portion?

thanks

Re: CGT on non-strata titled duplex

wonka5 — Mon, 10 Feb 2020 13:26:17 GMT

I think it sounds a little tricky given the number of title changes. Maybe write in to the ATO for a ruling? From my perspective, I feel like because they were non strata title duplexes and could not be sold separately, it is almost like looking at CGT implications for a house based on square meter use. Check this.

Essentially your initial portion was yours before sept 1985 so should be CGT exempt. Generally when you inherit an asset that was purchased pre cgt you are taken to have acquired it at the market value when the person died. You only pay CGT when you sell the asset. You will need to work out the possible cgt implications for each portion you inherited as you inherited. Check information on ato.gov.au on inherited dwellings.

Hopefully someone jumps in with a more comprehensive answer, but there is some reading to start you off.

Re: CGT investment property

ChrisR — Mon, 10 Feb 2020 03:44:34 GMT

Thanks for your question.

The short answer is no. You are only required to subtract the capital works deductions from the cost base. For more information, refer to the calculating the cost base for real estate page on our website.

As you can see from the information on our website, you may need to exclude any capital works deductions you've claimed in any income year. This requirement isn't extended to the decline in value of depreciating assets.

Our Community has had similar questions in the past. You can check out one of those threads here: Sales of investment property with depreciating assets

Hope this helps.

Thanks,

ChrisR

Re: Capital Gains Property - Change of Residency Cost Base?

TaxedoMask — Mon, 10 Feb 2020 01:49:46 GMT

Real estate is Taxable Australian Real Property (TARP) so I would say you do not get the market value, rather, it is what you paid for plus any other associated costs (see elements of cost base). This can include stamp duty, legal fees etc. related to the acquisition of the property.

If you make capital improvements, then these are added to the cost base (less any decline in value).

Re: Improvements for Tenant in Commercial Property

KylieS — Sun, 09 Feb 2020 05:37:24 GMT

Hi ,

Interesting one, we will look into for you.

KylieS

Capital Gains Property - Change of Residency Cost Base?

pam1972 — Sun, 09 Feb 2020 05:05:46 GMT

What can be included the cost base for a foreign investment real-estate property that was purchased as a non-tax resident and sold when a tax resident of Australia?

In 2007 I was a tax resident of the UK and purchased an investment property.

In 2010 I became a tax resident of Australia.

In 2020 I will sell this investment property and I am still a tax resident in Australia.

In understand the cost base for calculation for capital gain tax is based on the market value when I become a tax resident of Australia.

Questions

Is the cost base similar to other properties?

For example, do you add the purchase costs, capital improvement costs to the market value (when you become tax resident) to determine the cost base for capital gains purposes?

Can you please refer me to the appropriate legislation or tax ruling that justifies the above answer?

Re: Currency Act 1965

Goldman — Sat, 08 Feb 2020 16:03:05 GMT

Correction: At the end of previous Question I said: "Same question should I melt BARS into Jewellry = Collectable"......I should have asked COULD, not should. I appologise.

Could I legally make gold jewelry from Bullion? I expect the answer has to be a simple, yes. So then I need to know if doing so causes a CGT event. I would greatly appreciate knowing.

PS: You might like spending time watching YouTube videos. Probably not as much as me. It takes a good deal of available leisure time. This one shows an Aussie making what he calls Coins, but I expect are Medallions according to the ITAA. Which is what I hope the ATO (here) can confirm. https://www.youtube.com/watch?v=yTE3O7DyD-U

As I have no other avenue of enquiry than here. Although I can interpret 75% of the ITAA, it needs more than my stabs in the dark to reassure me, as I don't want to do anything illegal. And I expect any answer I get here (this web site) does not (should not) bind the ATO. So my questions are not (and can not be) for the purpose of Tax Evasion. Wiki: .. entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability..... but as I read the ITAA I can not find any reference to 'Intention". For example, if I intend to make a profit? Besides, if I intend to or not, to make a profit, how can my mental thoughts be determined? I can't find the term "Non investment purpose" in the ITAA 1997. As well as 1936. And, BTW, I can not find any Ministerial discretion in the ITAA concerning the Collectables rules. So if I put all my wealth into Collectables bought for less than $500.01 I do not pay CGT and so, is it true that my intentions are irrelevant? In that circumstance. And I have noticed how the Perth Miint has minted bullion coins for decades and they seem to be held very tightly. Why? It makes me feel dumb. Which I guess is why I'm asking these questions, here. My last resort.

Re: Property

macfanboy — Sat, 08 Feb 2020 03:50:56 GMT

If you transfer your Investment property to your wife you will be liable for Capital gains Tax as the ATO will see it as a sell even though no money has changed hands.

Property

Nb2 — Fri, 07 Feb 2020 12:08:22 GMT

Hi
I would like to find out what the implications are in to transferring my investment property into my wifes name. Is it something that can be done easily.?
Thanks in advance

CGT on non-strata titled duplex

Skipper — Fri, 07 Feb 2020 05:16:54 GMT

Background: I owned 1/3rd of non-strata titled duplex built pre 09/1985. My father and mother resided in one unit (mum passed 22 years ago). Title then changed to 1/2 dad 1/2 me. I've been told 1/6th is a CGT event for me from mum's death? I resided in the other unit for 3 years (32 years ago) until I bought a house with my partner. My unit remained vacant for 32 years (dad didn't want neighbours!) Dad passed August 2019. I have recently rented both units.

Question: Will I have to pay any CGT if I sell the property (either on my half share or my father's) which I can only sell as one property as it is non-strata titled?

Re: Loan from New Zealand family trust

KylieS — Fri, 07 Feb 2020 02:40:59 GMT

Hi Brent,

Lots of things to consider, we will do some research and get back to you.

Thanks

KylieS

Re: PAYG Variation Wi

ChrisR — Fri, 07 Feb 2020 01:28:46 GMT

Thanks for your question.

There are a couple of different ways to submit a PAYG withholding variation application (refer to our website for more information). You can submit it online as an e-variation or you can download or order a paper form.

If you choose to submit it electronically then you won't be required to physically sign it. If you choose to submit it via paper, we will need the original signed form. You can make a copy for your own records before you send it.

If you submit the paper form, there are a number of potential supporting or additional documents that you will need to submit with your application including:

a copy of your payslip (or payslips if you have more than one payer)
if you have more than two investments - a separate page (or pages) with the required details
if you have business income or non-commercial business or partnership losses - a completed PAYG withholding variation supplement (NAT 5423)

The form and instructions explains everything that you need to know.

Hope this helps.

Thanks, ChrisR

Re: Currency Act 1965

Goldman — Thu, 06 Feb 2020 03:08:25 GMT

Taxedomask - Hello There

So (as I was taught in primary school) I can pay a debt with 2830 Kg of 5-cent coins if the Vendor accepts. And,

Exchanging Coins for Polymer Notes is not subject to the legal tender rules. Nobody has to "exchange" any money at anytime - there is no existing debt/contract.

And if I exchange a $1 silver Kangarroo for a $1 circulating base metal coin - the Bullion value of the Kangaroo makes it (the exchange) a CGT (Capital Gains tax) event.

OK: Recently I exchanged Unallocated Pool Bullion (held at a Bullion Dealer) for Coins. They said it was not a CGT event. Is that correct? I suspect it falls under some "Rollover" rule.

And here is my final teaser question - because I do appreciate the voluntary nature of this web site.

A Collectable can be a Coin (not defined in the ITAA but defined in the Oxford dictionary as a legal tender minted thing), and a collectable can also be a MEDALLION - also not defined in the ITAA.....and the Oxford Dictionary does not go as far as the TEXAS Mint's definition, below.

So does the ATO agree that a Medallion is also a "ROUND" as per the Texas Mint (USA) that says: A round is a privately minted, non-legal tender MEDALLION in the size and shape of a coin. HERE--> https://www.texmetals.com/products/gold-coins/texas-gold-rounds.

This leads to a final question: Can I become a "Private Minter" and melt my private Bullion - not my bullion coins - but my bullion BARS" into Medallions and set the weight so the bullion value is less than A$500.01 ?? Thus (perhaps) rolling over my bullion bars - or creating a CGT event.

I would definitely enjoy holding them. And maybe put my profile/image on them. But which side? Obviously my best side.....I appreciate your non-obligarory response. And I am serious.

PS: Same question should I melt BARS into Jewellry = Collectable.

Re: Using SMSF to pay off mortgage

ChrisR — Wed, 05 Feb 2020 06:13:25 GMT

Thanks for your question.

Assuming that you own the land (not your SMSF), you will need to meet a condition of release (refer to our website) to be able to access your preserved super.

Each condition of release has different criteria that you will need to meet. Some conditions have restrictions around how much you can access, how you can access it (lump sum or income stream) and what you can use the money for, e.g. to avoid mortgage foreclosure.

If you don't meet a condition of release, you can't use the money in your SMSF to pay a personal expense.

Hope this helps.

Thanks, ChrisR

Re: Property Investment in SMSF

ChrisR — Wed, 05 Feb 2020 00:55:09 GMT

Thanks for the question.

The short answer is yes. The long answer is that it depends on a number of things including that the purchase will be in line with your SMSF's investment strategy, that it meets the sole purpose test and that it complies with the various investment restrictions.

You can read more about SMSFs and investing on our website. We can't tell you whether entering a contract to purchase an 'off the plan' property is a good idea, only that it can be done. You may want to consider appointing professionals to help you with determining whether this would be an advisable investment.

Hope this helps.

Thanks, ChrisR

Re: Replacement of carpet, blinds, kitchen appliances and repaint of investment propery

macfanboy — Tue, 04 Feb 2020 08:58:43 GMT

Yes carpet is 10 years and window blinds (internal/external) are 10 years, Curtains are 6 years.

Kitchen appliances depend on what they are:

Ovens/Stoves/Cooktops are 12 years

Dishwashers are 10 years

Refrigerators/Freezers are 13 1/3 years

Rental Properties 2019

Re: Replacement of carpet, blinds, kitchen appliances and repaint of investment propery

DuncanS — Tue, 04 Feb 2020 08:46:30 GMT

I would be giving the ATO a call.

My thoughts include claiming 4 years/effective life

Effective Life of carpet may be 10 years. Effective Life of blinds may be 20 years.

Duncan

Re: Loss on sale of investment property

DuncanS — Tue, 04 Feb 2020 08:40:28 GMT

Macfanboy gave a good answer.

Calculating a Capital Gain or Loss can be complicated.

Remember to reduce the Cost Base by Division 43 claimed during ownership.

Duncan

Re: Replacement of carpet, blinds, kitchen appliances and repaint of investment propery

macfanboy — Tue, 04 Feb 2020 07:55:59 GMT

I would strongly suggest against moving back in because when you do you can not claim for any depreciating assets and the ones that you have will need to be stopped as you have 'used' those assets.

If you stop advertising it for rent, then you can no longer claim rental expenses until it is genuinely available for rent - difficult to suggest it is if the place is being painted...

If you merely, arrange for the carpet, blinds and kitchen appliances to be delivered and installed under your supervision you will be ok claiming them as depreciating assets.

You could claim immediately for the costs associated with repainting faded or damaged interior walls of a rental property.

Re: Loss on sale of investment property

macfanboy — Tue, 04 Feb 2020 07:49:34 GMT

The Capital Loss can only be offset against Capital Gains that you incur with other property or shares.

You don't get to claim the loss in your tax return.

Negatively geared with a loss of $60,000 is extremely high, I'm not sure I have ever seen one so high in over 10 years experience...

Loss on sale of investment property

Kathy — Tue, 04 Feb 2020 06:40:19 GMT

I purchased a property in 2005 for $340,000. Since the GFC, the property has been heavily negatively geared and I average a loss of aporox $60,000 per year. I now have it on the market and the market is not good and recently have been offered $254,000 for it.

Can i claim the loss all in one financial year or is it spread over a few years? I also have to pay commission, advertising fees and all costs associated with the solicitor.

Replacement of carpet, blinds, kitchen appliances and repaint of investment propery

Kathy — Tue, 04 Feb 2020 06:36:05 GMT

I have been renting my property since Oct 2015 and recently the tenants decided not to renew their lease. It is still vacant although my property manager has been working hard to find suitable tenants. I have decided to move back in however the property needs to be repainted, new carpet laid, new blinds installed and new kitchen appliances replaced due to wear and tear from having numerous tenants living there. The work will be completed prior to me moving in. Am I able to claim these on my tax as deductions against this property?

Re: Strata Expense; Capital Work Fund

NateH — Tue, 04 Feb 2020 04:53:24 GMT

Hi ,

Thanks for you patience while we checked this for you!

Rental Properties 2019 set out the rules for this under the heading Body Corporate Fees and Charges:

”Payments you make to body corporate administration funds and general purpose sinking funds are considered to be payments for the provision of services by the body corporate and you can claim a deduction for these levies at the time you incur them. However, if the body corporate requires you to make payments to a special purpose fund to pay for particular capital expenditure, these levies are not deductible.
Similarly, if the body corporate levies a special contribution for major capital expenses to be paid out of the general purpose sinking fund, you will not be entitled to a deduction for this special contribution amount. This is because payments to cover the cost of capital improvements or repairs of a capital nature are not deductible…”

Once the body corporate has completed an ‘improvement’ (rather than a deductible repair) out of the ‘special purpose fund’ the total cost of the improvement will need to be determined so that each investment owner can claim their share of the common property capital works expenditure as a deduction under the capital works deduction rules, rather than under the general deduction provision. If the common property expense paid out of the special purpose fund was a repair then a similar approach needs to be undertaken to work out each investor’s amount of deduction for repairs.

Hope this helps. Thanks, NateH

Re: Expenses on Investment property

MarkA — Tue, 04 Feb 2020 00:23:23 GMT

We always appreciate a new post. (:

If I have understood your question correctly I would describe it this way.

As an investment which expects only to return a profit once a capital gains event happens we would understand all the costs would be captured in the cost base. See Working out your capital gain or loss.

If however you were to say the intention was a rental investment then there is provision for certain expenses to be claimed prior to the property being available for rent. See Expenses prior to property being available for rent

I hope this helps you.
Kind regards
MarkA

CGT investment property

Bilawal — Mon, 03 Feb 2020 12:14:46 GMT

Hi, i have recently sold an investment property. We originally bought the property in 2004, lived there until 2005, we started renting when we moved out. Now we sold the property last year 2019.
My question is, we were claiming the depreciation on the property up until 2019. I have read on ATO website that we need to subtract capital works(allowance) depreciation from cost base. It does not explain about low value pool or plant & equipment depreciation. Do we need to subtract low value pool and plant & equipment depreciation that we claimed through out the years from cost base ?

Improvements for Tenant in Commercial Property

NathanPeachey — Mon, 03 Feb 2020 07:11:00 GMT

Good Afternoon All,

I have been involved in a situation in where a significant amount of money was spent on improving a commercial property for a tenant, the cost was then repayed over the term of the lease. On the invoices it was clearly shown as a seperate item - improvements. Due to the high value, the improvement rent was alot of money and it has been treated as taxable income. We claimed finance expenses and depreciation, but also recieved a large tax bill due to the increase in taxable income. Should i be able to claim that the improvement part of rent is repayment of a loan/funding arrangement that is not taxable?

Re: Currency Act 1965

TaxedoMask — Mon, 03 Feb 2020 06:15:00 GMT

Not a lawyer here and this is definately a legal issue and more of a thought exercise rather than a tax issue, so these forums are exactly the best place to ask these sort of questions - so with that in mind:

The concept of legal tender just means that financial obligations / debts can be satisified with the legal tender - in this case Australian dollars. The restriction on coins in terms of legal tender is to prevent for example someone paying an amount (eg. $50,000 loan) in say 5c coins. This is due to the burden it places on the recipient and lets be honest, its not reasonable - interestingly at 2.83g a piece, the total weight of the 1million 5c coins would be 2830kg.

This is also why you cannot pay fines using 5c coins to the relevant statutory authority to try and spite them (as they can and are within their legal rights able to reject such payment - as it is not legal tender).

Now back onto your example, this means that if you are buying a $50 shirt any pay solely using $1 coins, the seller is able to reject your payment of $1 coins on the basis it exceeds the limit specified. However with your coffee situation, assuming theyre $1 a piece (for simplicity), there is little difference between purchasing 26 of them in one go or purchasing them individually for $1 each - thus it is more likey to be accepted.

Now onto your uncirculating coins (eg collectors coins, gold/silver coins - such as those issued by the mint). Yes, these are legal tender but since they are typically sold at greater than face value - it would not make financial sense to use them as legal tender. eg. a $100 1oz gold coin would cost significantly more than $100 to acquire. You would trade in the "gold" which is running at around $2300 an ounce rather than for the $100 face value.

Your 1/4 oz gold coin has a legal tender face value of $25 and the dollar silver coin is legal tender for $1. This means that for the previous example of 26 coffees, you can only purchase 1 cup (at $1 each). Whilst the coffee shop may accept the silver dollar coin in exchange for 26 coffees, it is not obligated to do so - since the silver dollar coin is good from a legal tender perspective for exactly that - one dollar.

PAYG Variation Wi

NorieWH — Mon, 03 Feb 2020 04:24:30 GMT

Hi ,may I confirm if ATO requires original signed PAYG Withholding variation forms? and what are the supporting document required when lodging PAYG Withholding application form?

Re: Strata Expense; Capital Work Fund

NateH — Mon, 03 Feb 2020 03:20:18 GMT

Hi ,

We are going to look into this one and get back to you as soon as possible.

Thanks, NateH