AMA - Round Two - Tax and Tax Return Questions - Ask Me Anything - GO!

Associatednicolemcmilllon @ Titanium Accountants & Advisors on 31/05/2017 - 09:15
Last edited 05/07/2017 - 10:20 by 2 other users

Edit % June 2017

I have now closed this thread.

I will think about posting a third round on the last week of June depending on how many people want me to do it.

I will be ready to prepare everyone's 2017 returns in July. I look forward to hearing from you.

For everyone else, thank you for participating and I hope you appreciated our answers.

Hi All,

I did a tax AMA a few weeks ago and got an overwhelming response (close to 700 replies).

I am going to do another one that will go from today 31 May to Sunday 4th June.

If you have any tax or tax related questions then ask below and I will do my best to get back to you as soon as possible.

Disclaimer: Any advice or answers given will be general in nature and you may need to speak to a tax adviser for more personalised advice.

P.S Please see my previous forum post as we tried to avoid duplicate questions.

I will reply to this thread with a link to the previous post.

Look forward to answering all your tax queries.

Lets do this!

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closed Comments

  • justwii on 01/06/2017 - 23:16
    +1

    Hi really simple question here: what is this family trust people have been talking about to reduce tax? How to set one up? And when should I consider going for it? Thanks heaps!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 01:07
      +1

      How is that a simple question. Do you know how much information there is to know about trusts. I suggest you do some reading on the internet.

  • orly on 01/06/2017 - 23:17

    Hi Nicole, no questions here.. Just wanted to say that I think you're amazing for spending so much of your time answering everyone's questions.. :)

  • justwii on 01/06/2017 - 23:22

    Another simple question here: say you are hired by a company as a fulltime employee, why people say turning yourself into a self-employed and then ask your company to re-hire you as a contractor can have tax benefits? Who can help on this whole process? And when should I consider going for it? Thanks heaps!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 01:08

      How long is a piece of string

  • stevelufc88 on 01/06/2017 - 23:26

    Hi Nicole,
    I moved here from the UK in March this year, on a 457 visa.
    Will I be classed as a resident for Tax purposes or not? the visa is a 4 year one so we are planning on sticking around for a while, probably will apply for PR in 2 years.
    If I'm classed as a resident can i claim back the tax I've paid so far, as it will probably be below an allowance?
    So far i've been taxed at 32.5% on my salary so I think that's the non-resident rate with no allowances?

    Thanks for any advice you can offer!

    • techboy on 02/06/2017 - 12:23
      +1

      I would consider you to be a Resident for Tax purposes.
      Yes you will be able to claim all the 'extra' tax that you have been paid.

      I would also make sure that the Tax File Declaration Form is filled out correctly (item 7 - Are you an Australian resident for tax purposes) ASAP.

      https://www.ato.gov.au/uploadedFiles/Content/MEI/downloads/T…

      Read this: https://www.ato.gov.au/Individuals/International-tax-for-ind…
      Under common situations: If you are are visiting Australia, working and living in the one location and have taken steps to make Australia your home.

      • stevelufc88 on 02/06/2017 - 21:23

        Thanks! Do you think it's worth getting an accountant to file my tax return for me? Or would the cost outweigh the benefits? I have no idea how much they charge as I've never used one before!
        Cheers

        • techboy on 03/06/2017 - 10:22
          +1

          Always better to be safe than sorry.
          The cost will be a tax deduction on next years tax return.
          I know that we only charge about $130 for basic tax returns (no sole trader/rentals/CGT etc).
          We also provide year round service for that charge so if you have any more questions/concerns or need hel (god forbid) with an audit it all included.
          I would also because you are new to Australia and the Tax system in the UK is very different to the one in Australia with respect to claiming deductions etc.

        • stevelufc88 on 03/06/2017 - 20:50

          @techboy: thanks, I'll have a look into it this week…..I'm also doing my UK return for the first time at the moment since becoming a landlord :(

  • leesangyee on 01/06/2017 - 23:39

    Hi,
    I have a small business and I wonder what the acceptable budget by ratio/percentage of revenue should be for administrative work if I outsource to another sole trader with book keeping skills?
    Thanks.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 08:00

      if it is personal services income, which i assume it is, then you won't be able to pay someone else for administrative work

  • 0p on 02/06/2017 - 00:17
    +1

    Hi Nicole,
    My cat has an online business of making viral videos. He earns quite a bit in ad revenue. We were having a discussion if this revenue is tax deductable. And if it is, is he eligible for tax returns? What do you think?
    Thanks
    -Harthalumus the cat

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 08:00

      It depends if the cat is black or white

      • 0p on 03/06/2017 - 16:34
        +1

    • 0p on 03/06/2017 - 16:34
      +1

      Geez, being a well educated professional in modern Australia, I am appalled that you consider race a defining factor in how much tax one should pay. I am quite surprised that you would even mention such a thing on this social website. What are you trying to say? Are black and white not created equal? We live in a dynamic world where Color of skin should not matter. Your stated values reflect on the morals embodied in titanium accountants and advisors. So please think twice before openly making such remarks.

      PS:My cat is golden.

  • lizzle on 02/06/2017 - 00:18

    Hi, I'm currently registered as a dental prosthetist with AHPRA but only working as a dental technician (doesn't require registration). I am likely to begin working as a prosthetist after EOFY.. Does this mean I can't claim my registration as a tax deduction for this financial year?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 01:02

      If you don't currently require the registration why did you get it. If it is 100% guaranteed that you will need it in the coming months then you should be able to claim it.

      • lizzle on 02/06/2017 - 06:52

        I'm a recent graduate and was expecting to be able to get a job as a dental prosthetist sooner than this. Thanks for your reply!

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 09:49
          +1

          You're welcome. Good luck in getting that first job. Once you get that first one you will be fine :)

  • laurence on 02/06/2017 - 00:19

    how does taxing on cryptocurrencies work? I trade AUD to bitcoin and then from BTC to another currency, wait 12 months or so for it to increase and then back to BTC and then to AUD. Do i pay capital gains tax on 50% of profit or 100%, I held the asset of the other currency for 12 months but I didn't hold it in BTC for 12 months. Thanks

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 01:06

      Should be fine 12 months 50%

      • laurence on 02/06/2017 - 10:22

        thank you

  • jaimex2 on 02/06/2017 - 00:21

    What are some things I can legally do to abuse the tax system?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 04/06/2017 - 10:18
      +3

      Go on centrelink

  • AlanI on 02/06/2017 - 00:32

    In addition to my regular day job, I do IT consulting in my private time for some extra cash.

    I put this extra income under Personal Services Income on my tax return.

    I did and billed a client for quite a few hours of work and they never paid it. I've basically given up that I'll ever get the money owed to me. Clearly since I was never paid that invoice I won't list it as PSI, but is there any way to get a deduction or something for this loss?

    I haven't lost any money as a result of me doing this work (it's just me working on a computer), just many hours of my time - is there any loss I can claim in my tax return? Or does that not really work since it's PSI? If it matters, I 'fail' the results test and am not classified a PSB.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 01:01
      +1

      Hi. You would only get a deduction if you had included the amount as income in prior years. As this invoice is from a current year. You simply don't include it in your return. Unfortunately there is no deduction for all your hard work as you did not actually incur any costs.

      • AlanI on 02/06/2017 - 01:48

        No worries, figured that'd probably be the case. Thanks for letting me know :)

  • Lancerx on 02/06/2017 - 01:35

    Is it legal to claim deduction for donation to church organisation e.g. sunday offering?

    • RusMafia on 02/06/2017 - 08:50

      As long as your donation is $2 or more, and you make it to a deductible gift recipient charity, you can claim the full amount of money that you donated on your tax return. To find out if your church is registered as a deductible gift recipient, you check on ABR website: abr.business.gov.au/DgrListing.aspx

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 10:48

        As a general rule, you can only claim approx $10 without a receipt. If you are donating $500 to your church for example, you can ask them for an invoice

  • vitaminb10 on 02/06/2017 - 02:14

    Hi Nicole,

    I was wondering, if I take a short course that's related to my occupation, is that tax deductible? What if I have to take a flight to take the course? Is the travel costs deductible too?

    I work in the entertainment business. If I buy movie tickets, or go to theater shows, or even just netflix, would I be able to claim that as research? I own my own business if that helps.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:41
      +1

      First section, travel expenses will offset the $250 reduction (if you don't know what this is, look it up on ATO website). In practical terms, you can't deduct the travel costs, just deduct the course costs unless your employer paid for it.

      Second part, no , all those expenses are private in nature.

      • vitaminb10 on 04/06/2017 - 22:08

        Thanks so much Nicole!

  • whoopdeedoo on 02/06/2017 - 02:42

    if i purchase a 6 year old car with my company, could i still claim depreciation over the next 5 or so years?

    • chumlee on 02/06/2017 - 06:12

      There's not much depreciation left in a 6 year old car

    • techboy on 02/06/2017 - 12:49

      You can claim depreciation over 8 years for what you paid for it regardless of age.
      However, you can only claim it if it is part of a logbook claim that you are claiming because you use the car for work.
      Not just going to/from work (unless carrying heavy/bulky tools without a secure lockup at work).

      https://www.ato.gov.au/Business/Income-and-deductions-for-bu…

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:42
        +1

        Yes you can depreciate it no matter how old it is based on what you paid for it.

        Get your accountant to advise you on which method is the easiest/most effective for you to use.

  • Mr BoMBAStiG on 02/06/2017 - 07:00

    If my spouse has earned less than $10k in casual work income this fin year, what are the best ways to maximise super and tax benefits for the both of us?

    Second question, if it's allowed please. Is it possible to help my parents buy a house now but still take advantage of the FHO benefits later when I want to buy my own?

    Thank you.

    • techboy on 02/06/2017 - 12:43
      +1

      First Question: I would have all bank accounts in her name (i'm sure that you trust her..) as you don't want to pay any extra tax on interest in accounts in your name or joint accounts. I would also contribute (either you or her) at least $1,000 to her super each year as the government will contribute $500 for her.

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 04/06/2017 - 10:17

        Techboy, turn on your PM and PM me.

  • DemocracyManifest on 02/06/2017 - 08:08

    Hi :)

    I have worked half the year in liquor sales and as a bartender, can I claim any alcohol purchased in my tax return as an educational expense of sorts? I assume this would be for example one stubble/one bottle of wine etc

    • techboy on 02/06/2017 - 12:41

      Short answer is No.

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:43

        Long answer is No too.

  • frostman on 02/06/2017 - 08:28

    So when purchasing shares, what is the rule around holding them for 12 months before selling due to tax implications?

    • RusMafia on 02/06/2017 - 08:46

      You have to pay capital gains tax on sale of shares and if you held them for 12 months or more, you pay the tax on 50% of profit. If you held them for less than 12 months, you pay tax on the full amount of profit. If you make a loss on sale, you get to carry the capital loss forward to offset against any future capital gains.

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:43

        That is correct.

  • GiggidyGoo on 02/06/2017 - 08:34

    Hi Nicole. Sorry, not sure if this has been asked….so many questions! With the new budge, claiming travel expenses for investment properties is removed next fy. If I paid for the trip this fy (even if the travel is next fy) can I claim it this tax return before the changes take effect?

    • techboy on 02/06/2017 - 12:38

      Tax deduction is from when it is incurred, so yes.

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:44

        Someone else did already ask this question. Yes you can.

  • ThithLord on 02/06/2017 - 08:39
    +1

    Hi Nicole - thanks for your help. I have a few questions:

    • 1 - A heap of tax agents allow online submission of my tax - do you recommend or not recommend this? I used this service once for an outstanding tax return and I didn't see much benefit, seeing as my tax affairs are relatively simple. I say this bearing in mind how simple it is to use the MyGov portal these days - maybe you have some tips on how using a tax agent is beneficial, other than having peace of mind?

    • 2 - If I use a tax agent, do I need to stipulate about the up to $300 unsubstantiated laundry costs etc, or is this normally (depending on employment role) always assumed?

    • 3 - This is just a question of curiosity - outside of tax time, what is your job like during the other time of the year?

    Thanks!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:48
      +1
      1. Whilst we are a physical store, we do all of our correspondence online too. IT doesn't mean we lodge online though. We correspond with our clients via email/phone just because its easier than having to sit with them one on one as we did back in the 90s (yes I am old).

      I would say the most benefit you get from using a tax agent is knowing that everything is taken care of and they know what they are doing. They know which box to put everything in which doesn't sound like much but many clients try to do their own return, and sometimes by putting a deduction in a wrong box, invite a 5 year audit and all of a sudden their last 5 year returns are being scrutinised.

      1. A good tax agent will take care of you. They are there to work with you and help you. I am sure we would always find much more than the $300 deduction for you.

      2. There is no outside of tax time for us. Whilst many individuals like to do their returns in July to October, we have companies, trusts, superannuation funds which take us all year round to complete.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:48
      +1

      If you need someone to help prepare your returns, you can PM me on here, or email us at [email protected] :)

      • ThithLord on 06/06/2017 - 07:48

        Thanks Nicole - I will do, come tax time. Is there anything for me to prepare with now, or shall I wait until July and email you? Thanks.

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 06/06/2017 - 08:14

          Nothing to do except wait till July :) If you have any questions in the mean time, PM me on here :)

  • VonLudwig on 02/06/2017 - 09:02

    Hi,

    Excuse my ignorance as this really isn't my field,

    I got a question or couple of questions regarding the new first home buyers grant that is coming into affect next financial year, as I overheard a couple of people talking about it a couple weeks back, and (correct me if I'm wrong) they were saying that there is a way you can claim the new first home buyers grant, taking money from your super to help you buy a house, as a deductible of some sort, just don't quite understand that if you could elaborate on it at all that would be great thank you!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:49
      +1

      It is a bit complicated to discuss on here. Probably best if you do some research on salary sacrificing superannuation contributions.

      • VonLudwig on 05/06/2017 - 09:18

        Okay thank you very much for that, I will look into it!

        Also, I have another quick question which is probably an obvious answer,

        Bought some rather expensive runners which are very supportive for the purposes of purely work, would it be possible to claim these as a deductible?

  • folken on 02/06/2017 - 09:07

    I just bought one of those Bose noise cancelling headphone for office use only. I work in IT. Can I claim it as a tax deductible work expense? If yes, can I claim the whole amount as a one-off instead of depreciation (paid $370)?

    • techboy on 02/06/2017 - 12:53

      No.

  • railspider on 02/06/2017 - 09:41

    Hi Nicole, if I have a 40 year old stock-standard (no special fittings or new capital works) house that I want to rent out, is there any reason to pay for a depreciation schedule? What sort of things could still be depreciated after 40 years?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 09:47

      Have you undertaken any construction or major improvements recently? If not, its probably not worth getting a depreciation report.

      • railspider on 02/06/2017 - 09:58

        Have never done anything to it. It's just four walls & a roof. Plus it's in a low-income area so rent will not be high.

        Thanks for the advice.

  • spreet009 on 02/06/2017 - 09:47

    Hi ,
    Can i please get advise if i put a lump sum in my super now can i be able to claim it as a deduction in this year(2016-2017) tax return.( the reason being that i got bit late in starting salary sacrifice this year.)
    kind regards.
    preet

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 09:48

      Are you an employee? If so, probably not.

      • spreet009 on 02/06/2017 - 10:04

        Hi
        so it will just be considered as after tax contribution.( yes i am an employee and i will consider salary sacrifice from next year earlier on then.)

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 10:09

          Get professional advice before you do anything next year just to be sure.

        • spreet009 on 02/06/2017 - 10:13

          Thanks for your advice. Sure i will do it .

  • sintro on 02/06/2017 - 09:48
    -7

    Look at this then answer this question.

    Is Taxation euphemism for Theft, Violence and Slavery?

    • lddv04 on 02/06/2017 - 13:25

      And a better way would be…..

    • chumlee on 02/06/2017 - 13:33

      Lol.

      Have you ever been to a hospital? Called the police, ambulance or fire to an incident? Bought medication subsidised by PBS? Been bulked billed by a doctor?

      I'm sure you went to school and were privileged enough to have taxpayers subsidise the cost.

      Why don't you answer your own question

      • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:50

        Thank you Chumlee

      • sintro on 05/06/2017 - 12:08
        -3

        LOL. You really think your tax money goes to those services?

        Maybe this will help you understand better.

        Larken Rose delivers a video for all the people who don't think we would have roads, protection, or anything else, without "taxes" (i.e., mass extortion) and the "guidance and management" (i.e., violent domination) of "government" (i.e., a parasitical ruling class).

        • chumlee on 05/06/2017 - 13:52
          +1

          Cuckoo cuckoo

        • sintro on 05/06/2017 - 14:43

          @chumlee:
          Saying Cuckoo Cuckoo ain't gonna improve anything.

          Maybe I shouldn't have thrown you in the deep end.
          Try this, maybe easier for you to understand.

          Gone are the days where a family can survive on just one paycheck… every day it seems that things are more and more out of control, yet only one in a million understand why. You are about to discover the system that is ultimately responsible for most of the inequality in our world today.

          The powers that be DO NOT want you to know about this, as this system is what has kept them at the top of the financial food-chain for the last 100 years.

          Learning this will change your life, because it will change the choices that you make. If enough people learn it, it will change the world… because it will change the system.

          For this is the biggest Hidden Secret Of Money. Never in human history have so many been plundered by so few, and it's all accomplished through this… The Biggest Scam In The History Of Mankind.

        • chumlee on 05/06/2017 - 15:03

          @sintro: OK now I get it.

          You are a stooge for some scam.

          Wasting your time here

        • sintro on 05/06/2017 - 15:09

          @chumlee:

          Really? How am I scamming you?

          I only trying to make sure you and fellow ozbargainers don't get ripped off by giving you information for Contemplation.

  • OzBargainUserOne on 02/06/2017 - 09:57

    GST Accounting with eBay Promotions:

    When eBay have 20% vouchers and the PayPal invoice for an item for say $1700 comes down to $1360 (and this is the amount that gets charged to the company credit card), yet the retailer provides an invoice for $1700 with $154.54 of GST included do you claim the full $154.54 as the GST component in your BAS?

    Or do you claim only $1360/11 = $123.64 in GST because this is the amount the card was charged?

    To me it makes sense that you claim the GST on the full amount of $1700 because that's what the retailer has sent to the ATO and then treat the eBay voucher as income? Is this eBay voucher/discount of $340 an Input Taxed Supply with no GST?

    i.e in Reckon One:
    Product A - Photography Equipment - $1545.46 (net) $154.54 (gst) $1700.00 (total)
    eBay Voucher - Income (input taxed) - $340.00 (net) $0 (gst) $340.00 (total)
    ————
    $1360.00

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 10:45

      Why would the ebay voucher be input taxed?

      I would only claim the GST that I actually paid regardless of the invoice.

      The discount you get is paid to the company by ebay thats why the full amount of GST remited to the ATO by that company because they receive some of it from you and some of it from ebay.

      Ebay will claim the portion they paid and you should claim the portion you paid.

      • OzBargainUserOne on 02/06/2017 - 11:02

        Thank you - this makes sense and ebay will be claiming GST on the 20% they paid the supplier.

        i.e

        I pay the supplier 80% of the invoice total hence I claim 80% of the GST component on full price.
        eBay pays the supplier 20% of the invoice total hence they claim 20% of the GST component on full price.

        It does contradict/conflict with the TRS scheme where tourists will present the full $1700 invoice and get the full GST reimbursed as the Tax Invoice issued by the supplier shows $1700 being paid from the customer. I guess the ATO will lose out in this instance as eBay will be claiming GST credits where there are none left!

      • OzBargainUserOne on 02/06/2017 - 11:17

        If you look at it like 2 separate transactions whereby I pay the supplier the full amount and then I get reimbursed by ebay.com.au separately then I should be claiming the full amount of GST. If ebay.com.au provided the rebate 7 days later, then there would be 2 separate transactions on my statement. One for money out of $1700 to the supplier and another money in line entry from ebay.com.au for the 20% rebate.

        Instead of 7 days, this rebate is processed rightaway so I don't know if timing affects the GST refund amount. In this instance ebay.com.au shouldn't be claiming a GST credit?

        so confusing!

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 11:22

          You are not paying the full amount. How can you claim GST that you haven't paid.

        • OzBargainUserOne on 02/06/2017 - 11:52

          @nicolemcmilllon:

          Well I am paying the full amount to the retailer for $1700 and then immediately getting a refund from ebay.com.au for 20% of the value.

          If you treat it like 2 separate transactions that is what happens I think hence the invoice from the supplier to me for the full amount of $1700.

          If the scenario is what you describe then the supplier should issue me an invoice for only 80% of the value and then issue ebay another invoice for 20% of the value.

          The fact that the supplier issues me an invoice for 100% of the value and has no further dealings with ebay.com.au leads me to believe that I claim 100% of the value.

          i.e The supplier receives $1700 from me and issues me a tax invoice for $1700.
          ebay.com.au reimburses me 20% of this value. ebay.com.au does not deal with supplier or pays supplier anything or receives a tax invoice from supplier hence they shouldn't be claiming any GST credits.

          This rebate of 20% appears as income on my statement but there is no GST component hence I treat as GST Input taxed.

          EBay can't claim the portion paid because they don't receive a tax invoice from the seller.

        • OzBargainUserOne on 02/06/2017 - 12:31

          @nicolemcmilllon:

          When receiving the discount from ebay.com.au - I will treat this as a normal taxable supply - I.e similar to issuing a tax invoice for $340 to ebay.com.au which includes $30.91 GST.
          The net result is similar to me only getting a GST refund of $123.64 ($154.54 - $30.91). This is precisely the amount of GST included in the discounted $1360 amount which is what you originally said.

          :)

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 12:44

          @OzBargainUserOne: :)

  • egjg1234 on 02/06/2017 - 09:59

    Hi Nicole,

    I just started a new diploma at TAFE while im working, Its called Diploma in Building design and I'm working in the engineering sector.

    what kind of rebates could i get from this? I heard that you can get tax rebates if its related to my work or if im trying to get a better pay.

    thanks!!!

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 04/06/2017 - 10:16

      Are you paying for the course yourself? Are you paying for it upfront or are you using HECS or other ways of funding the course?

      Is your employer not reimbursing you for this course?

      You may be able to claim deductions (not rebates).

      • egjg1234 on 05/06/2017 - 08:56

        I'am paying the course myself and im paying them at 3 payments over the course of the year
        my employer is not reimbursing me
        how much are the deductions?
        thanks for replying!

  • samboy2k on 02/06/2017 - 10:22

    Hi There,

    I have an property that I lived in for about 15 months, I have since moved out of the property for about 4 years and has been an investment property since.

    I plan to sell this property:

    1. Will it qualify as Capital Gains Tax Exemption (Six Year Absence Rule) ?

    2. Is there particular forms to fill out or particular process I have to do, to notify ATO I am applying for Six Year Absence Rule ?

    Thanks :)

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 10:41

      where did you move to for the last 4 years. did you have another primary place of residence? you can only use the six year rule if you didnt have another primary place of residence when you moved out

      no need to notify ato you just don't include the gain in your return.

      • samboy2k on 02/06/2017 - 15:15

        I moved to my parents home. I used my parents home as mailing and residential address for the past 4 years with ATO.

        Would i still be eligible ?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 07:50

          Yes :)

  • leesangyee on 02/06/2017 - 10:29

    Hi,
    I have a small business as sole trader, and I wonder what the acceptable budget by ratio/percentage of revenue should be for administrative work if I outsource to another sole trader with book keeping skills?
    Thanks.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 10:40

      sounds like you are doing this to income split which is illegal.

      also if you are receiving personal services income which I assume you are, and you don't pass the personal services income rules, then you will not be able to claim a deduction for amounts paid to someone for admin work anyway.

      • whoopdeedoo on 03/06/2017 - 21:11

        just wondering why this is illegal?
        sole traders can't employ people?

        • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 03/06/2017 - 21:42

          check the ATO website for "personal services income"

  • JacobTheLiar on 02/06/2017 - 11:07

    Hey nicolemcmillon and thank you for taking the time to answer the questions.

    Had a look at the previous thread but couldn't find an answer to my question:

    I'm volunteer with a registered Charity called WhiteLion that deals with youth at risk. I'm managed by WhiteLion but ultimately it's just me and a kid that catch up once a fortnight to chew the fat and talk about any issues he might have. As a part of this charity work, can you tell me whether the food and goods I purchase (eg; hot chocolate, mini golf fees etc) for the young child (and/or myself) be considered a tax deduction?

    Thanks for your help in advance.

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 11:21
      +4

      They won't be considered tax deductions.

      But what you are doing will give you more joy and fulfilment than any tax deduction could. Its awesome!

  • fireatwill on 02/06/2017 - 11:13

    I understand there is a rule where for investment properties, if you live in it for the 1st 6 months, then rent it out afterwards, you can elect it as your primary residence if you sell within 6 years (assuming no other primary residences)and hence not pay any capital gains tax.

    By that logic, if you lived in it for say 3 years and 6 months, does that mean you can the selling period also increases by 3 years (to 9 years)?

    • Associatednicolemcmilllon @ Titanium Accountants & Advisors on 02/06/2017 - 11:20

      No.

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