Investing: Growth versus income

Every investor goes in with dreams of a pot of gold, but there is a fundamental difference between investor types – one looks to line their pockets with investment returns along the way, and the other has the patience to wait until the end of the rainbow to reap the rewards. The distinction between investing […]

Are those investment returns on revenue or capital account?

Investment returns can be on revenue or capital account. Similarly investment expenditure could also be on revenue or capital account. The distinction between revenue and capital is not always clear and the characterisation of a receipt will ultimately depend on the circumstances that apply to the taxpayer. The distinction between an income and capital receipt […]

Top 7 tax tips for investors

The end of the financial year is not all that far away. To help you to prepare for tax time, we provide our top 7 tips for your 2015-16 tax return. This list is not exhaustive, and we will need to review the items in light of your personal circumstances. Tip 1: Dividend Income We […]

Can your summer holiday house be turned into a tax advantage?

Now that summer has come and gone, the ATO has been active in issuing reminders about the taxation issues surrounding holiday homes. The fact the ATO issues reminders is a sure sign that the topic is continuing to be a concern. Even though it is still some time before the owners of beach shacks or […]

Property transactions: Got an appropriate valuation?

Not all taxpayers may be aware of how the use of estimates can affect their annual tax bill. Estimates are most commonly used in apportioning expenses between private and business use. More important however is the use of valuations to estimate the cost of transactions that are not arm’s-length or when no actual cash changes hands.  […]

Your sharemarket portfolio and tax

There’s a warning that sharemarket investors will hear at least once in their lives in some form or other ­– base decisions on investment merit, not on trying to save tax. It’s a maxim that has been put a more colourful way: Don’t let the tax tail wag the investment dog. Wise words; but don’t […]

Can interest and borrowing costs on investments be claimed as deductions?

Investors are frequently faced with questions and issues regarding the correct tax treatment of certain aspects of financial products, and sometimes the various features of these products. An important question that crops up on a regular basis is whether investors can claim tax deductions for interest and borrowing costs that they have incurred in the […]

Investing: Growth versus income

Every investor goes in with dreams of a pot of gold, but there is a fundamental dichotomy of investor types – one looks to line their pockets with investment returns along the way, and another who is patient to wait until the end of the rainbow to reap the rewards. The distinction between investing for […]

Borrowing to invest, and negative gearing – pros, cons, and how it works

Taking out a loan to raise money for an investment is a well-used tactic for many Australians. In fact, borrowing to buy big ticket items is part of financial reality. How many of us could afford to buy a house out of our own pocket? Borrowing funds will increase the amount you can have invested […]

Investors: Beware ‘mortgage management’ plans

Investors contemplating an arrangement which is being marketed as a ‘mortgage management’ plan should be wary. Under this scheme, split loan arrangements – that is, the combination of an investment loan, a home loan and a credit facility – are being promoted as providing tax-effective financing and therefore have attracted the attention of the Tax […]