Is there any schemes available where i can tap into depreciation losses to offset my income tax without explicitly having full ownership of investment property etc
I am thinking of scenario where by a developer will have excess depreciation losses which cannot be used so these can be passed on someone else via an arrangement - involving a fee.
Wondering if there is something like this which can be done without falling foul of the ATO
Smoke seen, but where is the mirror?
Great idea.
Why not also start claiming your friends KMs they drive for work or the cgt losses from poor crypto decisions of your neighbour?
Essentially, not your investment, not your not your losses/gains, not your tax liability/benefit.
these can be passed on someone else via an arrangement - involving a fee
Well this does exist, but the fee is you purchasing the property
Wondering if there is something like this which can be done without falling foul of the ATO
Of course there is. You buy a loss making company and can offset its losses. Likewise depreciation allowance and consolidate.
Just note you will be buying all the company’s outstanding obligations.
Is there any schemes available where i can tap into depreciation losses to offset my income tax without explicitly having full ownership of investment property etc
No, you can't just randomly claim a loss on something that wasn't yours.
I am thinking of scenario where by a developer will have excess depreciation losses which cannot be used so these can be passed on someone else via an arrangement - involving a fee.
Losses can be carried over forever. So if a developer has a loss, they can carry that loss over until they have a profit to offset it.
So if they lost $2m in 2018, they can carry the loss over each year until they make a profit in 2023 of $3m, apply the $2m loss to reduce it to $1m.
So no developer will want to do that you are seeking.
Wondering if there is something like this which can be done without falling foul of the ATO
Its basically tax fraud, so you'll always be foul with the ATO.
How to negative gear without the hassle of property ownership
Ozbargainers love this one simple trick.
That makes cents. Cheers.
Literally, I'm assuming?
Yes, I can transfer you plenty. I’ll DM you my banking details
those schemes are so 2023…
First, let me assure you that this is not one of those shady pyramid schemes you've been hearing about. No sir. Our model is the trapezoid that guarantees each investor an 800% return within hours of your initial…
Hey guys how do you have your lunch and eat it too?
no you can't.
as far as I know, you can't even claim for loss even if you are paying for the interest.
ie friend have full ownership of the house/property, but both of your name are on the loan documents.
Surely this can’t be a real question?
I worked as a tax accountant for several years. This is what I dealt with on a regular basis.
My favourite was the guy who wanted to mint his own currency out of pure gold, value it at $1 and pay it to his employees to avoid payroll tax (they could then sell the gold for a lot more than a dollar). He argued for quite a while on that too, because he read something online that told him he could mint his own currency.
Did anyone turn their house into a place of worship?
Wouldn't be much of a benefit if you did, main point of religions is tax free income coming in. I guess you could gift your house to your "church" then deduct the costs of donating part of your salary to the upkeep somehow? Sounds like the kind of thing the ATO would just go "yeah nah" on.
The amount that people donate to churches is truly terrifying though. And the number of old people who somehow have a pile of assets, donate $100k to a church each year yet still collect a pension (this was 15 years ago though, dodging the income test on pensions these days is really hard) was pretty high.
If people can deduct funding their own churches and religious events though, I should be allowed to start up a tax deductible pub. Dedicated to the god Silenus, every donation is tax deductible and requires an act of worship (i.e. having a beer). It'd be a pretty big religion pretty quickly, I reckon.
Anyway, that's my offtopic rant about taxes and religion for a quiet saturday afternoon :P
What about the technique from the Young Sheldon episode … could you gift your employees Stuffed Toys and buy them back for 100x the price?
I'll assume you never got that AFR spot you wanted.
yeah this scheme right here
https://www.afr.com/wealth/tax/ato-found-pub-empire-made-fic…
"ATO found pub empire made ‘fictitious’ GST refund claims
Virtical Group made false claims for millions in GST refunds based on invoices for construction that did not happen on property it did not own, the tax office has found."
Sounds like an emissions trading scheme.