Tax accounting and financial advice - Contact Required

Niceguy14 on 19/07/2018 - 20:57

Hi All,

I need some one who is trusted tax accountant and financial adviser. I have a fair understanding of high level tax rules including around CGT but need someone sincere who could offer trusted advice and help me manage my tax obligations in most effective manner with long term view.

Up until now I have filed my tax returns myself but now with few investments I am leaning towards contacting someone who is experienced to help me set long term direction.

I work in IT sector and am building a house as an investment property (completion due in Dec 18) and someone has advised me to make it PPR before making it investment property to save on CGT (as I bought the land 3 years back when the prices were quite low). The suggestion was to live in it for a year or so and then make it investment property to save on CGT (as I could get valuation done before giving it on rent and when I sell it anytime in future, CGT will be applied at the difference. In this way I could save CGT from when I bought the land till I rent it out- of course build price will also become part of cost base). On the other side if I give it on rent after build completion, CGT will be applied (in case I sell it in future) right from when I bought the land + build cost. Not sure if this is the right way to save on CGT. I also don't want to sell my current PPR and already know the rules around CGT for PPR. But need someone to advise me on long term implications and effective tax structure moving forward.

Could you suggest anyone who is experienced and trusted by other ozbargain users? By the way I live in Melbourne West.

Thanks All.

Financial Financial Advice

Comments

  • chumlee on 19/07/2018 - 21:17

    I'm sure you could find the answer somewhere on ATO website.

    The advice given to you doesn't sound correct to me.

    I use Simon Jones & Co accounting and recommend them. They are in Werribbe

    • Niceguy14 on 19/07/2018 - 22:07

      Thanks chumlee. I will contact Simon Jones & Co. Would you recommend anyone specific in that practice? & Would you mind sharing the reasons you think the advice is not correct? Thanks Again.

  • CheapskateQueen on 19/07/2018 - 21:29

    Have you been claiming interest expenses on the land as deductions for the past 3 years?

    Do you own any other property?

    • Niceguy14 on 19/07/2018 - 22:09

      No I haven't claimed any interest expenses as deductions as I know you could only claim expenses for Investment property when it is liveable which is not the case as this was just a land till it completes.

      • CheapskateQueen on 22/07/2018 - 20:45

        This is incorrect.

        I suggest you pursue finding that accountant. You need someone to explain things to you clearly.

  • redfox1200 on 19/07/2018 - 21:50

    if you never sell the property you wont have a CGT issue

    • Niceguy14 on 19/07/2018 - 22:11

      Yes that's true but when you do sell then you have to pay CGT. I don't mind to live in it as PPR to save on CGT if that is the way to go.

  • 2jzzzz on 19/07/2018 - 22:48

    I just jumped on a CGT calculator and I'm not sure if I'm reading it right. Say I bought a house in 2015 for $400k, lived in it for 3 years then sold for $800k, is my CGT $80k?

    • Niceguy14 on 19/07/2018 - 22:56

      First of all you don't need to pay any CGT for your PPR. For all other investment properties, CGT depends on whether you kept the property for longer than 12 months and also depends on your income in the financial year you sold your house. If you kept house for more than 12 months then its 50% discounted. E.g. assuming your income is zero and you kept more than 12 months and considering the figures you mentioned (buying @ $400K and selling @ $800k), you will have to pay around $67k CGT (ignoring all other buying and selling costs). That is my understanding of the tax rules.

  • mbck on 19/07/2018 - 23:07

    Put it on black, trust me

    Ps don't trust me

  • Niceguy14 on 21/07/2018 - 15:03

    Any other suggestions for Tax Accounting Adviser in Melbourne's west please?

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