Society/Culture Australian Property Prices to Crash?

[Bombermania]

so you feel taxis shouldn't have tax deductions because ordinary drivers don't?

why should strata be deductible when power, water, insurance and maintenance for ordinary property owners are not? Especially given these are the biggest costs alongside management (note you can self strata manage and thus no cost)

Seems a very illogical argument that's for sure

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My comment was about blocks of units or apartments where everyone pays the same strata fees and charges but investors get a benefit that is denied to owner occupiers. That is not reasonable.

It is not the same as two separate vehicles that share no relationship.

 

[FRUMPY]

My comment was about blocks of units or apartments where everyone pays the same strata fees and charges but investors get a benefit that is denied to owner occupiers. That is not reasonable.

It is not the same as two separate vehicles that share no relationship.

One makes income, therefore has to be declared to the tax department, the other doesn't. One gets deductions, one doesn't, I'll let you guess which one gets the deductions. Pretty simple reasoning really

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[Power Raid]

My comment was about blocks of units or apartments where everyone pays the same strata fees and charges but investors get a benefit that is denied to owner occupiers. That is not reasonable.

It is not the same as two separate vehicles that share no relationship.

I sense you're missing basic concepts of tax law and not understanding personal use

two identical ford falcons but different use, is a very relevant analogy

another anology would be having sex with your wife and another paying some chick. both chicks just had intercourse but one has taxable income and the other personal use. Further only one can put in deductions for the condom, depreciate the roof over the head and write off the linen.

 

[Royal Flush]

I sense you're missing basic concepts of tax law and not understanding personal use

two identical ford falcons but different use, is a very relevant analogy

another anology would be getting your having sex with your wife and another paying some chick. both just chicks had intercourse but one has taxable income and the other personal use. Further one can put in deductions for the condom and depreciate the roof over the head and write off the linen.

With those analogies, you're the best accountant in Australia IMO.

Any nob should be able to understand those


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[Bombermania]

I sense you're missing basic concepts of tax law and not understanding personal use

two identical ford falcons but different use, is a very relevant analogy

another anology would be getting your having sex with your wife and another paying some chick. both just chicks had intercourse but one has taxable income and the other personal use. Further one can put in deductions for the condom and depreciate the roof over the head and write off the linen.

I am getting your point but I am talking about shared common ground.

 

[Power Raid]

My comment was about blocks of units or apartments where everyone pays the same strata fees and charges but investors get a benefit that is denied to owner occupiers. That is not reasonable.

It is not the same as two separate vehicles that share no relationship.

buy an apartment, get your sister (or friend) to buy an apartment
then rent your apartments to each other and now you can negative gear

but only do so for 5 years otherwise your caught by capital gains tax


to even the playing field, in your scenario, would you advocate CGT on your primary residence? As that is creating an unequal playing field.

 

[Power Raid]

I am getting your point but I am talking about shared common ground.

you'd hope that was the prostitute; not your wife!

 

[yodellinhank]

I am getting your point but I am talking about shared common ground.

So the investor sells up and pays CGT, the owner occupier sells and is exempt. You take issue with this as well?

 

[Bombermania]

So the investor sells up and pays CGT, the owner occupier sells and is exempt. You take issue with this as well?

Why not extend the ability to claim strata costs to owner occupiers?

 

[FRUMPY]

Why not extend the ability to claim strata costs to owner occupiers?

Someone lives in a unit/apartment and wants to claim the deductions.....

Why can't I claim the same deductions as a rental property? Oh that's right, I don't generate any income from my main residence.....

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[FRUMPY]

So the investor sells up and pays CGT, the owner occupier sells and is exempt. You take issue with this as well?

I presume he doesn't want to pay CGT when he sells his unit.....

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[Bombermania]

Someone lives in a unit/apartment and wants to claim the deductions.....

Why can't I claim the same deductions as a rental property? Oh that's right, I don't generate any income from my main residence.....

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So can an investor not claim strata costs?

An investor doesn't earn rent income from a unit or apartment block's common ground.

 

[Suspense]

2) As an accountant myself by training (CA), I find the concept of negative gearing against ordinary income a must for two reasons being equitable treatment, a functioning financial sector and aspiration.

The wealthy (and the children of wealthy) can "create investment income" by instead of paying wages, paying themselves dividends. Further they can pay a dividend to a trust and then allocate to their kids meaning they have an unfair advantage enshrined by tax if we remove negative gearing from income.

The fact that HNW families can use trust distributions to minimise their net tax payable across their family group has no relation to the justifiability of negative gearing.

Both are distortions to the concept of a progressive tax system - which benefit only those with access to capital/wealth. That's a fact.

Another is, as an economy we should be encouraging investment in our society and encouraging the building of wealth and savings. Paul Keatings superannuation has transformed this nation by providing a massive wealth tool to invest in local industry and infrastructure. Having a decentralised and flexible investment pool is just as important as it is this part of the sector that provides liquidity. Without liquidity, you don't have a functioning market.

Lastly do we want a society of mugs who are limited to trading time for money and seeking the teet of unions for $0.50 more? Or do we want people seeing themselves as a diversified business unit with growing passive income and employment income? This not only helps individuals "own" industrial relations as they are on both sides of the equation but also trains them to be self sufficient leading into retirement.

Odd argument - people would no longer invest if negative gearing was abolished?

 

[Royal Flush]

So can an investor not claim strata costs?

An investor doesn't earn rent income from a unit or apartment block's common ground.

His Tennant's use it.
Maybe the reason they took the place on.

You're making yourself look pretty silly

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[FRUMPY]

So can an investor not claim strata costs?

An investor doesn't earn rent income from a unit or apartment block's common ground.

Yes they do, it's part of the attraction of people renting the property, hence deductable.

What income are you wanting to claim your costs against? Oh that's right you don't generate any income. Rent a room out of your unit and claim a proportion if you reeeaaaalllllyyy want to claim some strata costs.

You haven't answered the other question if you would be willing to pay CGT on disposal of your unit you live in? In guessing not.....

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[Royal Flush]

[QUOTE="Suspense, post: 69939927, member: 23864"


Odd argument - people would no longer invest if negative gearing was abolished?[/QUOTE]
Obviously a NO.

You just need to look outside Australia's borders to realise that.


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[Bombermania]

His Tennant's use it.
Maybe the reason they took the place on.

You're making yourself look pretty silly

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A property's amenities can justify a higher rent but the costs are evenly shared.

 

[Royal Flush]

A property's amenities can justify a higher rent but the costs are evenly shared.

This is too complex for you

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[Bombermania]

Yes they do, it's part of the attraction of people renting the property, hence deductable.

What income are you wanting to claim your costs against? Oh that's right you don't generate any income. Rent a room out of your unit and claim a proportion if you reeeaaaalllllyyy want to claim some strata costs.

You haven't answered the other question if you would be willing to pay CGT on disposal of your unit you live in? In guessing not.....

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I'm against taxes on residential property and I'm not saying abolish negative gearing because that's a red herring.

 

[Bombermania]

This is too complex for you

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Owner corporation or body corporate fees and charge are evenly shared between unit or apartment owners.

 

[Royal Flush]

Owner corporation or body corporate fees and charge are evenly shared between unit or apartment owners.

Well done!

Investment taxation way to complicated for you.

If I were you I'd listen and learn from our resident accountant.



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[Bombermania]

Well done!

Investment taxation way to complicated for you.

If I were you I'd listen and learn from our resident accountant.



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I am not talking about taxation, and owner or body corporate fees and charges are evenly shared across all owners.

Did you not know this?

 

[FRUMPY]

I'm against taxes on residential property and I'm not saying abolish negative gearing because that's a red herring.

So you're just complaining that a unit that is rented can claim the strata costs and you can't and you know why but still complaining......thought as much ...

#unitlifeasahoneowner

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[Royal Flush]

I am not talking about taxation, and owner or body corporate fees and charges are evenly shared across all owners.

Did you not know this?

See comment above Frumpy...

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[Bombermania]

So you're just complaining that a unit that is rented can claim the strata costs and you can't and you know why but still complaining......thought as much ...

#unitlifeasahoneowner

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I'm fully aware of the reasons and as both sets of owners share the costs for use of the common ground then they should be treated the same.