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Tax estimate

Discussion in 'Accounting, Tax & Legal' started by Here_To_Learn, 27th Mar, 2008.

  1. Here_To_Learn

    Here_To_Learn Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    315
    Location:
    Sydney
    Hi all, I have been spending time trying to calculate what my tax liability will be for this financial year as I am looking to invest in Navra's Great Southern Vineyeards project.

    One area I am finding challenging is with ABN AMRO's installment warrants. My understanding is that you can claim the pre-paid interest that is charged when purchasing the warrants. ABN AMRO provided this detail to me already.

    There is also a capital protection cost of $0.027c per warrant which I understand is also tax deductible. I have been told there is some kind of formula that should be used. My accountant still coming up to speed and did not have this info.

    Anyone else in this situation ?
     
  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    as far as i know the capital isnt deductible... it adds to the cost base....

    a bit more infor is requried for those who havent looked ath the warrants... id imagine though you have have 3 months of deductions for interest this year and then 12 months of interest costs next year.... but as i said im not sure of the facts
     
  3. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Is there a ruling for this product ?

    Otherwise, generally ...

    1) The costs of capital protection are not deductible - forms part of the cost base. They might be structured as a put option.

    3) Prepayments of deductible expenses - for a period up to 12 months and that period must end by the last day of the following FY (unless it is below $1000).

    These are only general rules, ask your finacial advisor or the promoter if there is a ruling.

    Cheers,

    Rob