Travel Claim Question for Tax

Posted On: Wednesday, November 22, 2017

Question:

I have a quick question.

I have recently been engaged by a client for casual tutoring services. (18 hours /week).

I travel 3 days per week from my office to the University Campus. The distance is approx. 103klm. I intend using a log book and claim "cents/kilometre" method. A flat rate of $0.66/klm??

Could you advise if I am doing this correctly?

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THE WORK HEALTH & SAFETY AND OTHER LEGISLATION AMENDMENTS ACT (QLD) 2017 THE IMPACT ON YOU AND YOUR QUEENSLAND BUSINESS

Posted On: Wednesday, November 08, 2017

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SMS Question

Posted On: Thursday, October 12, 2017

QUESTION

In 1984 we bought a small grocery store unable to pay its lease commitment, from that we grew and expanded. We bought land and built a 700sq m building in 2003 and started trading in the new building in 2004. We transferred the existing business to the new building, for family reasons we sold the business paid the loan on the building, formed a family trust and a Company to operate the trust. The lessees paid lease payments into the trust which distributed its funds in accordance with the trust deed. The trust owes the wife and myself approximately 1 Million $. We did not claim or have received interest payments on the money. Our financial situation has changed considerably early this year.

The lessee went very badly, we exercised the landlord’s right, re-entered the building, spent our funds and borrowed money, and our time without pay to re-establish the business and sold the business to new lessees on the 28-08-2017 on a 10 years lease.

We repaid borrowings to the bank. Because of our changed finances, can the family trust repay part or all the money owing to us without us having to pay tax on that money?

Asset protection issue 0088 on page 9, question 5 you address a similar case, our accountant does not share that opinion. Your answer and direction will be most appreciated.

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Australian Tax Residency

Posted On: Sunday, October 01, 2017

Question 1

Hi, I have a client that has a question surrounding Australian Tax Residency. His circumstances are as follows:

  • Had been an Australian resident since birth
  • In 2007 he moved to Indonesia permanently with his spouse & 2 children
  • They rented out their Principal Place of Residence for 2 years & then sold it
  • In 2012 he split with his wife. His wife & 2 kinds then moved back to Australia
  • In 2014 he had a child to his new partner in Indonesia
  • In 2016 he started a company in Singapore. (While still living in Indonesia)
  • In 2016 he purchased a property in Australia to use when he returns to spend time with family & kids
  • In 2017 his Singaporean company obtained some contracts in Australia, which sees him returning to Australia more frequently (But less than 183 days per year).

My questions are: is he an Australian Tax Resident? – If so, at what point? –If not, other than physically moving back to Australia, what would cause him to become a tax resident? Thanks

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Capital Gains Question

Posted On: Wednesday, September 06, 2017

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Mid Year IR Update July 2017

Posted On: Monday, July 10, 2017

Mid-Year Industrial Relations Update July 2017

 

National Wage Increase

Australia's lowest-paid workers will get a $22-a-week pay rise after the Fair Work Commission lifted the national minimum wage to $694.90 in the decision made on June 6, 2017.

The Fair Work Commission has lifted the wage by 3.3 per cent - an increase of 59¢ an hour to $18.29 an hour.

This decision was influenced by the fact that inflation hit 2.1 per cent in the year to the end of March, according to the most recent official consumer price index.

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Insurance and Tax Question

Posted On: Thursday, July 06, 2017

QUESTION 

I am emailing with regard to a tax question. During a storm, sheds were damaged. A payout was received from the insurance company. The payout and other money were used to purchase/build another shed. Is it correct that we are to be taxed on the difference between the payout and the depreciation value?

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Capital Gains Questions

Posted On: Tuesday, July 04, 2017

 

Question

Our client resigned from his job on the 1st August 2016, his shares in the company who employed him were then sold. The shares are valued on the 1st April every year. The Company has stated the “sale date” on the share valuation as at 1 April 2016. We feel the capital gain event occurred on the 1st August when he resigned so should be included in the 2017 tax return. Please confirm our thoughts on this.

The proceeds from the above sale will be distributed to the client over 20 quarterly payments. As the company is based in New Zealand the payments will be dependent on the exchange rate at the time of payment. Should the capital gain be calculated at the 1August 2016 and paid with the 2017 tax return in its entirety or should the capital gain be calculated every quarter and paid over five years? Your answer to the above two questions will be greatly appreciated.

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Working From Home and Tax Question

Posted On: Thursday, June 29, 2017

 

QUESTION 

 Hi, I run an online business from my home. I am the owner of the property. There is one room dedicated for the business, which is around 12 % of the home covered area. I also have other dedicated places where I have placed a file cabinet, a computer server and another desk that is used as part of running the business. How much can I deduct as an office rental for my accounting perspective. Thanks.

ANSWER

We suggest 12 % - if your home has a desk in a dual purpose area, then it would not qualify. The area has to be set aside and have the hallmarks of a place of business.


 

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CGT Question

Posted On: Thursday, June 15, 2017

 

QUESTION

Hello, I have a client whose Family Trust owns a house. No RENT received. To date we have been capitalising the expenses for this house. Water, council, land Tax, etc. when the house is sold are the expenses capitalised taken into account for CGT purposes or are they ignored. E.g. house bought $350,000 sold less fees $450,000 = $100,000 capital gain. If $30,000 in unclaimed outgoings, do they reduce the profit to $70,000 or are they ignored. If ignored I assume they form part of beneficiaries distribution.

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