Accounting, bookkeeping, taxation, contracts, legal issues, etc. Thu, 28 Feb 2019 10:24:10 +0000 Thu, 28 Feb 2019 10:24:10 +0000 InvestChat https://www.investchat.com.au/community/forums/accounting-tax-legal.23/ Thu, 28 Feb 2019 00:26:28 +0000 https://www.investchat.com.au/community/threads/moving-money-from-company-to-a-trust.10336/ https://www.investchat.com.au/community/threads/moving-money-from-company-to-a-trust.10336/ invalid@example.com (Olga Anderson) Olga Anderson
What I don’t understand is how to move money from my company to the family trust.

I imagine it can be done as a ‘loan’, but does it mean I need...

Moving money from company to a trust]]> 4 Wed, 13 Feb 2019 06:27:53 +0000 https://www.investchat.com.au/community/threads/moving-from-payg-to-abn-it-contractor.10331/ https://www.investchat.com.au/community/threads/moving-from-payg-to-abn-it-contractor.10331/ invalid@example.com (SydneyGuy) SydneyGuy
Many IT contractors in my circle advise working as ABN contractor can save lots of tax. However they can't explain how as their tax affairs managed by accountants.

Here is our situation:

Spouse 1:
Contract rate: $960 per day inc super - PAYG ($219k yearly taxable working 250 days a year)

Spouse 2:
Contract rate: $850 per day inc super - PAYG ($194k yearly taxable working 250 days a year)

Considering:
- Contract rates (salaries) remain same.
- Tax affairs...

Moving from PAYG to ABN - IT contractor]]> Tue, 12 Feb 2019 02:15:25 +0000 https://www.investchat.com.au/community/threads/lending-to-a-friend-for-offset-account-returns.10326/ https://www.investchat.com.au/community/threads/lending-to-a-friend-for-offset-account-returns.10326/ invalid@example.com (goponcho) goponcho
He is wanting to loan me money so i can sit it in my offset account against my PPOR, which has a interest rate of 4% currently. Would not have to pay tax on this return either as it is merely reducing interest payments.

From a tax perspective, is this fine for him to loan me say 100k, transfer account to account, and then i transfer him back a later date?

Do i need a...

Lending to a friend for offset account returns.]]> 2 Tue, 22 Jan 2019 01:50:58 +0000 https://www.investchat.com.au/community/threads/how-to-set-up-a-family-trust.5699/ https://www.investchat.com.au/community/threads/how-to-set-up-a-family-trust.5699/ invalid@example.com (pinkmoon) pinkmoon
Where to register the trust? Also, i want to ask is it necessary to incorporated your business to make it a trustee for your trust? or can a sole trader business be be a trustee?

Thanks guys, just wanting to know more before i see my accountant.]]> 6 Tue, 15 Jan 2019 00:56:23 +0000 https://www.investchat.com.au/community/threads/i-took-depreciation-on-my-rental-property-in-2017-i-wish-to-stop-taking-depreciation-in-2018.10237/ https://www.investchat.com.au/community/threads/i-took-depreciation-on-my-rental-property-in-2017-i-wish-to-stop-taking-depreciation-in-2018.10237/ invalid@example.com (hahahaa) hahahaa 2 Tue, 08 Jan 2019 23:28:55 +0000 https://www.investchat.com.au/community/threads/practical-book-keeping-for-discretionary-trusts.10308/ https://www.investchat.com.au/community/threads/practical-book-keeping-for-discretionary-trusts.10308/ invalid@example.com (Jello) Jello
I am planning to set up at DT to invest in shares, buy and hold long term. For simplicity say I gift to the DT to purchase shares 2 times a year and never sell.

The company (trustee) will do no business, have myself and partner as director and shareholder.

1. What do DT records ‘look’ like (eg. Is it a hard copy journal or diary type entry, excel spreadsheet, online...

Practical Book-keeping for Discretionary Trusts]]> 3 Wed, 02 Jan 2019 21:46:57 +0000 https://www.investchat.com.au/community/threads/online-business-claiming-expenses-before-incorporation.10304/ https://www.investchat.com.au/community/threads/online-business-claiming-expenses-before-incorporation.10304/ invalid@example.com (Tubs) Tubs
I have a pilot/test website that I have built and paid for on my personal credit card. I will to set up the company once I think my business model has legs (will be in the next 3 months) . I've incurred a few thousand in setup costs plus domain name etc.

I dont plan on making any money in the first year of operation, I will accrue any advertising revenue and have it paid once Im ready for other revenues to come in.

I have a few questions:

1. Can I personally invoice the company...

Online business - claiming expenses before incorporation]]> 1 Wed, 02 Jan 2019 09:41:46 +0000 https://www.investchat.com.au/community/threads/brisbane-accountant-for-trust-setup-share-investing.10242/ https://www.investchat.com.au/community/threads/brisbane-accountant-for-trust-setup-share-investing.10242/ invalid@example.com (Jello) Jello Does anyone have any recommendations for Brisbane based accountants who specialise in trust advise/set up? I am new to the finance world and I would like to set up the right structure now before I begin investing (index funds/LICs) with the aim to join forces with my partner in the future. Any recommendations would be greatly appreciated. If they are based on your own experience even better.

Many Thanks,
Jello]]> 4 Thu, 20 Dec 2018 03:10:29 +0000 https://www.investchat.com.au/community/threads/newsletter-subscriptions-tax-deductable.9566/ https://www.investchat.com.au/community/threads/newsletter-subscriptions-tax-deductable.9566/ invalid@example.com (Propagate) Propagate
Thinking about a sub to Intelligent Investor.

Was wondering if subs are tax deductible, (generally or only if you buy something from the recommendations, or not at all?)

Coming from a long term hold investment stance rather than as a "trader".

Cheers.]]> 19 Wed, 07 Nov 2018 23:04:20 +0000 https://www.investchat.com.au/community/threads/health-allowance-question.10271/ https://www.investchat.com.au/community/threads/health-allowance-question.10271/ invalid@example.com (rattler) rattler
Outside of my base and bonus salary, I also receive a Health allowance and Travel allowance, as my employer currently do no t have enough employees in Australia to set up a corportate health insurance. Now I understand that this allowance will be taxed as a normal pay. With travel, I can claim back what I spent on travel but on health allowance it seems like a double dip from tax...

Health allowance Question]]> Tue, 23 Oct 2018 01:18:09 +0000 https://www.investchat.com.au/community/threads/etfs-a-boon-but-watch-the-tax-treatment.10252/ https://www.investchat.com.au/community/threads/etfs-a-boon-but-watch-the-tax-treatment.10252/ invalid@example.com (twisted strategies) twisted strategies ETFs a boon, but watch the tax treatment - Cuffelinks]]> 1 Tue, 16 Oct 2018 12:08:36 +0000 https://www.investchat.com.au/community/threads/implications-of-registering-for-gst.10245/ https://www.investchat.com.au/community/threads/implications-of-registering-for-gst.10245/ invalid@example.com (rattler) rattler I created an ABN couple of years ago to by .com.au domains , but never ended up building those websites. I do intend to build them at later stage, but would have no revenue under that ABN for another year or so.
1) If I haven't earn anything under ABN, do I still need to do anything at the tax time ? I currently file tax return under by TFN
2) I am planning to sign up ABN for GST - this is mainly to take advantage of Qantas business rewards (I take 2-4 flights a week, this...

Implications of Registering for GST]]> 2 Tue, 31 Jul 2018 01:32:42 +0000 https://www.investchat.com.au/community/threads/family-trust-upe-figuring-out-a-non-transparent-trustee.10175/ https://www.investchat.com.au/community/threads/family-trust-upe-figuring-out-a-non-transparent-trustee.10175/ invalid@example.com (Rhjcooper) Rhjcooper First post after reading and learning a lot about financial structures.

My wife is slowly becoming estranged from her father, part of which is to do with his non-transparent dealings in the DFT. We are trying to figure out exactly what he has been up to. He is an accountant and has used my wife as a beneficiary of the DFT for 15 yrs. My understanding and realisation of what has been going on is expanding rapidly, and this is causing a number of questions about the legal and moral...

Family Trust, UPE: Figuring out a non-transparent Trustee]]> 1 Tue, 31 Jul 2018 01:29:36 +0000 https://www.investchat.com.au/community/threads/family-trust-bucket-company-its-shareholder-qn.10176/ https://www.investchat.com.au/community/threads/family-trust-bucket-company-its-shareholder-qn.10176/ invalid@example.com (Rhjcooper) Rhjcooper

1. If initially the shareholders of the bucket company are 2x individuals, can i sell the shares in the bucket company in 20yrs time to a second DFT...

Family Trust, Bucket Company & its shareholder Qn]]> 1 Tue, 24 Jul 2018 05:19:21 +0000 https://www.investchat.com.au/community/threads/interest-deductibility-for-bonus-share-plans.10155/ https://www.investchat.com.au/community/threads/interest-deductibility-for-bonus-share-plans.10155/ invalid@example.com (coolcup) coolcup
I have a quick question. I understand that if I use a loan to fund a share investment that is expected to produce dividend income, the interest on the loan is likely to be deductible.

If I borrowed money to invest in AFIC and then chose to reinvest their dividends by way of their Dividend Substitution Plan so that the dividends were not assessable income for tax (it is instead like a bonus issue of shares), would the interest on the loan be deductible? Obviously in this case,...

Interest deductibility for bonus share plans]]> 7 Sun, 17 Jun 2018 02:48:35 +0000 https://www.investchat.com.au/community/threads/deregistration-of-trustee-for-family-trust.10123/ https://www.investchat.com.au/community/threads/deregistration-of-trustee-for-family-trust.10123/ invalid@example.com (NicMc) NicMc
About 10 years ago we set up a Family Trust with our Company as Trustee. As it transpired, the Family Trust was never used, and has never earned any income, held any assets nor carried any debt. Other than lodging NIL Business Activity Statements each quarter, we've given it little thought.

In 2013 we closed and voluntarily deregistered our Company - neglecting to consider the ramifications with regard to the Family Trust.

This was brought to my attention by a notice from the ATO...

Deregistration of Trustee for Family Trust]]> 1 Fri, 04 May 2018 02:04:52 +0000 https://www.investchat.com.au/community/threads/structuring-the-ownership-of-shares.9686/ https://www.investchat.com.au/community/threads/structuring-the-ownership-of-shares.9686/ invalid@example.com (Terryw) Terryw

An ideal way to own shares would be via a discretionary trust. The main reasons being

• a) Asset protection against creditors of the beneficiary, and

• b) Tax savings

A discretionary trust will generally give good asset protection on any growth in value of the shares. Any loan giving to the trustee will be an asset of the lender so no asset protection if the lender were to become...

Structuring the Ownership of Shares]]> 77 Sat, 14 Apr 2018 00:46:57 +0000 https://www.investchat.com.au/community/threads/the-great-australian-crackdown.10071/ https://www.investchat.com.au/community/threads/the-great-australian-crackdown.10071/ invalid@example.com (twisted strategies) twisted strategies The Great Australian Crackdown

this comes directly back to bad government and the allowing of selective inverting of law,

if the Government wants to morph into the French Inquisitorial system it has to institute the same safeguards ( and the French have some epic tales of justice failure despite these safeguards .

considering how many trained lawyers are sitting in Parliament ( in Canberra)...

The Great Australian Crackdown]]> Wed, 28 Mar 2018 09:05:55 +0000 https://www.investchat.com.au/community/threads/discretionary-tax-return-lodgement.10051/ https://www.investchat.com.au/community/threads/discretionary-tax-return-lodgement.10051/ invalid@example.com (goponcho) goponcho
Thinking of creating a discretionary trust to debt recycle hold only common shares.

Am I allowed to lodge the trust's return myself for free? Or must an accountant lodge this?
Cant find the answer on the ATO site?

Thanks]]> 3 Wed, 28 Mar 2018 09:04:56 +0000 https://www.investchat.com.au/community/threads/tax-structuring-trust-personal-assets.10050/ https://www.investchat.com.au/community/threads/tax-structuring-trust-personal-assets.10050/ invalid@example.com (Beng) Beng
The property in the trust is not ideal for my lifestyle, but with a substantial investment, it could be. Where are I have the option to purchase a second property either ideal for my lifestyle, or purely the purpose of good investment returns (if...

Tax Structuring Trust & Personal Assets]]> 5 Tue, 20 Feb 2018 01:30:02 +0000 https://www.investchat.com.au/community/threads/uber-instant-asset-write-off.9952/ https://www.investchat.com.au/community/threads/uber-instant-asset-write-off.9952/ invalid@example.com (ABlondie) ABlondie
I am a new Full time Uber driver. I bought my car in Jan 2017 for $14,000 but only started driving Uber in Oct 2017 (50% private 50% business). Can i still claim the instant asset write-off for that car in 2017-2018 year tax? If not, how is depreciation calculated?

Also if i purchase another car now and use both for Uber (50 private/50 business). Can i claim asset write-off (given it meets criteria), expenses etc.. on both cars?
Thanks,]]> 2 Tue, 13 Feb 2018 20:35:37 +0000 https://www.investchat.com.au/community/threads/pesky-carry-forward-capital-losses.9822/ https://www.investchat.com.au/community/threads/pesky-carry-forward-capital-losses.9822/ invalid@example.com (Waimate01) Waimate01
It's a personal capital loss. Most of our wealth is stored in other vehicles, and my modest personal investments do not have sufficient unrealised capital gain to cover the carry-forward losses.

The carry forward losses seem like a waste - as inflation grows, their face value remains numerically static while their actual value slowly erodes.

Is there anything useful one can do with carry-forward capital losses?...

Pesky carry-forward capital losses]]> 8 Sat, 20 Jan 2018 02:15:33 +0000 https://www.investchat.com.au/community/threads/working-out-cost-base-price-after-share-consolidation.9995/ https://www.investchat.com.au/community/threads/working-out-cost-base-price-after-share-consolidation.9995/ invalid@example.com (Apocalypso83) Apocalypso83
First post here Am having trouble working out the CGT for some shares I sold because i'm unsure of the cost base price after share consolidations. The shares in question are Elders Ltd (ELD). There were a few parcels purchased, a couple consolidations, plus a bonus parcel.

Here's the details – in order of transaction date

a) BUY 01/09/96 - 1613 @ 1.40 = $2258.20
b) BONUS 01/10/96 - 161 @ 0.00 = $0.00 (1 for 10 offer)
c) BUY 01/11/96...

Working Out Cost Base Price After Share Consolidation]]> 6 Tue, 02 Jan 2018 03:32:42 +0000 https://www.investchat.com.au/community/threads/investing-for-minors.9972/ https://www.investchat.com.au/community/threads/investing-for-minors.9972/ invalid@example.com (Housechopper) Housechopper
Does a formal trust need to be set up with a trust deed etc? Or is simply providing my sons birth certificate to the share trading platform when setting up the 'minor trust' account enough?]]> 11 Mon, 01 Jan 2018 10:58:54 +0000 https://www.investchat.com.au/community/threads/trading-family-and-close-friends-funds-club-or-proper-business-structure.9454/ https://www.investchat.com.au/community/threads/trading-family-and-close-friends-funds-club-or-proper-business-structure.9454/ invalid@example.com (pcj821) pcj821
I will not do this for free and will take a small percentage of any profit, however, I know that in order to do this things start to get slightly tricky, specifically in regard to ASFL and ASIC requirements. I have considered starting...

Trading Family and Close Friends Funds, Club or Proper Business Structure?]]> 9 Tue, 21 Nov 2017 01:19:11 +0000 https://www.investchat.com.au/community/threads/investing-within-a-discretionary-trust.9940/ https://www.investchat.com.au/community/threads/investing-within-a-discretionary-trust.9940/ invalid@example.com (Gary 123) Gary 123
I would like to purchase some additional shares within the trust. Can I reinvest the $20,000 and purchase shares instead of distributing it to myself or my spouse?

If not, say I distribute the $20,000 to myself and then pay tax on the $20,000 at my marginal tax rate minus the franking credit and...

Investing within a discretionary trust]]> 3 Sat, 18 Nov 2017 01:28:22 +0000 https://www.investchat.com.au/community/threads/tpd-paid-now-what.9937/ https://www.investchat.com.au/community/threads/tpd-paid-now-what.9937/ invalid@example.com (Knowledge is power...) Knowledge is power... KIND REGARDS
Desperate carer and mother]]> 1 Thu, 16 Nov 2017 10:47:03 +0000 https://www.investchat.com.au/community/threads/type-of-trust-code-investment-or-trading.9933/ https://www.investchat.com.au/community/threads/type-of-trust-code-investment-or-trading.9933/ invalid@example.com (Antonio) Antonio
I established a discretionary family trust last year where I have carried out active share/option trading activities . I definitely consider that I have been carrying out share trading as a business rather than as an investor as I look to earn income through short term difference between BUY and SELL prices rather than income through dividends. I rarely hold a a stock or option for longer than a month before trading out.

I am now completing my first tax return and the lodgement...

Type of Trust Code: Investment or Trading?]]> Thu, 12 Oct 2017 11:33:45 +0000 https://www.investchat.com.au/community/threads/transferring-private-shares-to-family-trust.9911/ https://www.investchat.com.au/community/threads/transferring-private-shares-to-family-trust.9911/ invalid@example.com (kefa) kefa
I currently own a private company under my own name. I wish to transfer the ownership to my family trust that I only recently setup. I'm getting confused on what name I put as the new owner in my share register. Having read some other threads it seems like I should be putting the name of the corporate trustee as the new owner. What I don't understand is how anyone works out whether it is owned by the corporate trustee or the trust?

Regards,
kefa]]> 2 Sat, 26 Aug 2017 04:22:26 +0000 https://www.investchat.com.au/community/threads/is-the-foreign-income-tax-offset-usable-for-a-temporary-resident.9882/ https://www.investchat.com.au/community/threads/is-the-foreign-income-tax-offset-usable-for-a-temporary-resident.9882/ invalid@example.com (wm_shi) wm_shi I received annual tax statement from the managed funds I invested.
There are some amounts of foreign income tax offset on the statement.

As described in Foreign income exemption for temporary residents - introduction, foreign incomes are...

Is the foreign income tax offset usable for a temporary resident?]]> Fri, 11 Aug 2017 04:25:14 +0000 https://www.investchat.com.au/community/threads/joint-house-investment-tax-advice-options.9872/ https://www.investchat.com.au/community/threads/joint-house-investment-tax-advice-options.9872/ invalid@example.com (SJ1980) SJ1980 I purchased a substantial property in Brisbane 4 years ago together with my brother and parents. I have lived there for 4 years and recently moved out with my partner. My brother only lives there on weekends and my parents (in their late 60s) live there full time.

We all own a 1/4 share of the property, both my brother and I have mortgages on our shares, mine is 100% of my share paying interest only.

As the property is no longer my primary residence is it classed as an investment...

Joint House Investment - Tax Advice / Options]]> 1 Fri, 30 Jun 2017 02:03:17 +0000 https://www.investchat.com.au/community/threads/cash-flow-strategies-and-offshore-investing-advice.9666/ https://www.investchat.com.au/community/threads/cash-flow-strategies-and-offshore-investing-advice.9666/ invalid@example.com (J_Lee) J_Lee
I just found these forums, thought i would have to head over to the US forums for this stuff, but there is lots of great advice and information on here! I will digest as much as i can over the next 12 months but thought i might put this scenario out here now to get some initial direction.

Here's my scenario;

- You have 600-700k in capital, currently sitting in residential Investment properties
- Your on 120k p/year income from your employer, the job has 18 months left in it...

Cash flow strategies and offshore investing advice]]> 12 Tue, 02 May 2017 21:22:55 +0000 https://www.investchat.com.au/community/threads/recouped-initial-investment.9769/ https://www.investchat.com.au/community/threads/recouped-initial-investment.9769/ invalid@example.com (Arrtty) Arrtty I've recently invested about 6k to some shares that have done particularly well to the point of almost 200% if I sell some of the shares to recoup my initial 6k what are the tax ramifications?]]> 10 Mon, 01 May 2017 03:08:15 +0000 https://www.investchat.com.au/community/threads/can-i-transfer-capital-from-a-company-to-a-trust.9765/ https://www.investchat.com.au/community/threads/can-i-transfer-capital-from-a-company-to-a-trust.9765/ invalid@example.com (Syd Bogle) Syd Bogle
I wish to use these retained profits to invest in shares, but the disadvantage of purchasing shares within the company is that I would not benefit from the 50% CGT discount...

Can I transfer capital from a company to a trust?]]> 8 Mon, 24 Apr 2017 05:01:55 +0000 https://www.investchat.com.au/community/threads/company-as-trustee-for-discretionary-trust.7010/ https://www.investchat.com.au/community/threads/company-as-trustee-for-discretionary-trust.7010/ invalid@example.com (Kurieuo) Kurieuo
Through an accountant I recently registered a new company, Company Pty Ltd, and formed a family trust for which Company Pty Ltd is trustee. To save a few dollars I thought to do the registering for an ABN, TFN and business name myself. But now I have ended up scratching my head quite a bit and doubting how it all works.

This company/trust structure was set up in order to limit liability when trading...

Company as trustee for Discretionary Trust]]> 7 Wed, 19 Apr 2017 03:48:05 +0000 https://www.investchat.com.au/community/threads/car-depreciation-limit-for-business-what-is-claimable.9768/ https://www.investchat.com.au/community/threads/car-depreciation-limit-for-business-what-is-claimable.9768/ invalid@example.com (Tesla) Tesla I can claim all finance costs (eg loan interest, etc)?
What happens if the actual depreciation is far less than the 25% diminishing balance allowed - I guess that only comes out when the car is sold?]]> Wed, 05 Apr 2017 10:57:33 +0000 https://www.investchat.com.au/community/threads/lending-to-invest.9700/ https://www.investchat.com.au/community/threads/lending-to-invest.9700/ invalid@example.com (Strawbs) Strawbs

• Upon settling the trade: Transfer the money...

Lending To Invest]]> 17 Sun, 02 Apr 2017 10:44:38 +0000 https://www.investchat.com.au/community/threads/family-discretionary-trust.9755/ https://www.investchat.com.au/community/threads/family-discretionary-trust.9755/ invalid@example.com (Tommy01012017) Tommy01012017 (From How Discretionary Trust Works | Starting Family Trust ATO)


I have been reading lots websites about family discretionary trust. My understanding is my taxable income...

Family discretionary trust]]> 7 Fri, 10 Mar 2017 03:49:06 +0000 https://www.investchat.com.au/community/threads/buying-shares-in-kids-names.9735/ https://www.investchat.com.au/community/threads/buying-shares-in-kids-names.9735/ invalid@example.com (Al1979) Al1979
Buying shares in kids names]]> 10 Fri, 10 Mar 2017 03:14:07 +0000 https://www.investchat.com.au/community/threads/paying-my-sister.9744/ https://www.investchat.com.au/community/threads/paying-my-sister.9744/ invalid@example.com (Tommy01012017) Tommy01012017
I'm a new member and don't know how to create my new post. My question is:

I am AUS citizen working in Australia.

If I earned $45000 AUD this year, can I pay $18200 to my sister like English lesson as a reward to improve my job’s skill. Then, my income will reduce to $26800 and pay less tax. I don't want to use gift for reason. There are some gift rules in ATO(No more $10000 gift in 1 year, No more than $30000 in 5 years).

How can I prove her money is taxable and my money...

Paying my sister]]> 3