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PedroEA(Newbie)Newbie
1 Sept 2023

I am a tax-paying resident, and is sending me as a gift $100.000 from the sale of one property she had.


I understand that I don't pay taxes over gifted money, however I pretend to use this money in two different ways and would like to know what are the tax rules for it.


1- $50.000 will be used to buy a UTE and tools and start my landscape business (do I pay tax over this $50.000 or only the basic income tax from the business? In my future tax returns can I deduct this $50.000 from my taxes as it was used to invest in my business?)


2-The other $50.000 I plan put in financial investment to use to buy a property later one when I have more money for the deposit (do I pay tax over the $50.000 invested or only over the earnings from the interests?).


THANK YOU

Pedro


Thank you


281 views
1 replies
281 views
1 replies

Most helpful response

Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
1 Sept 2023

Hi PedroEA


There is a lot going on in your post and it sounds like you would benefit from sitting down with a tax agent and talking your questions through. Some general guidance below.


Re1) Do you plan to start a company or operate as a sole trader? You will pay tax on the profit from your landscape businesses (How much you get from jobs minus the costs associated with doing the jobs)


UTE - The UTE will most likely be a capital expense and you may be able to depreciate the asset. You will most likely need to complete a logbook to determine the business usage of the UTE.


TOOLS - Depending on the price of the tools you will either be able to claim them fully or may have to deprecate them.


Re2) You will pay tax on the income from the financial investment and may have to pay tax on the capital gain (if any) when you sell the investment.

All replies

Most helpful reply

TobyJDodd(Devotee)Registered Tax Professional
1 Sept 2023

Hi PedroEA


There is a lot going on in your post and it sounds like you would benefit from sitting down with a tax agent and talking your questions through. Some general guidance below.


Re1) Do you plan to start a company or operate as a sole trader? You will pay tax on the profit from your landscape businesses (How much you get from jobs minus the costs associated with doing the jobs)


UTE - The UTE will most likely be a capital expense and you may be able to depreciate the asset. You will most likely need to complete a logbook to determine the business usage of the UTE.


TOOLS - Depending on the price of the tools you will either be able to claim them fully or may have to deprecate them.


Re2) You will pay tax on the income from the financial investment and may have to pay tax on the capital gain (if any) when you sell the investment.

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