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  2. You're welcome. I did a B. Commerce majoring in accounting in another life, but never really pursued it. That training allows me to know the questions to ask google and translate it to simple language when I don;t know the answers off the top of my head. I quite enjoy answering your kind of posts - makes me keep at least a bit up to date. I'm far far from an expert. Those sort of shows always exaggerate profit. It's up to almost 2 years and up to almost one year depending if you sell on the 29th June or the 2nd July. If they were flipping 4 houses a year that would be business/ordinary income (the houses would be considered trading stock rather than investments) and they would definitely be paying income tax rather than CGT1. If they were doing it that regularly they would be paying instalment tax - monthly or quarterly. Instalment tax is like the tax your employer pays to the ATO as an estimate of what your final yearly tax due would be. 1 - They would be trying hard to classify it as CGT. But at even one a year regularly it would be ordinary income.
  3. Today
  4. Thanks Zaph. You're obviously very knowledgeable on these matters. I appreciate you taking the time to answer my questions. I guess I was trying to make the point that anyone watching the show needs to factor in some additional outlays, rather than literally treat the difference between purchase/renovation and sale as pure profit. Your comments are very helpful. I still can't believe the CGT would possibly not be payable for 2 years after the event. So if they flipped 4 - 5 houses per year that would require good accounting to keep track of their outlays. Interesting.
  5. Yesterday
  6. CGT on the retained unit is only payable after sale. No income tax on the increase in value. CGT on the house would be payable after sale too. However, it may be deemed that this couple are in the business of flipping and the profit would be treated as ordinary income. If they owned the house for less than a year it wouldn't make a difference to the tax. If owned for more than a year and they can claim it was a CGT event and not ordinary income they would get the 50% discount. CGT is included in an individual's tax return due end of October if doing yourself or around May if using a tax agent. Tax payable will be due a month or two after lodging. So if selling on July second and using an accountant CGT would not be payable for almost two years.
  7. The Dow Jones for the Close of April 2017
  8. The Euro for Month-End April 2017 Google’s New Flying Car & the Future Could Be So Much Britighter The Confidence Game – The Next Crisis
  9. Last week
  10. Can feel a duet thread coming up.
  11. Nice clown song, clown.
  12. Italy to Raise Taxes to Satisfy Brussels – Why the Euro Will Fail The Gold Reports & the Building of Volatility the Precursor to Chaos Trump Keeps His Pledge on Tax Reform
  13. Greetings to all. I have several questions after watching the new "flipping" show on Channel Seven (7) last night - Aussie Property Flippers. As the name suggests it is based in Australia. Without wanting to give "it" too much publicity let me outline the gist of the show. One couple purchased a home in Baulkham Hills in NSW -- $850,000. The other couple bought an apartment in Coolangatta, Qld - I think it was for $300,000. The house sold for $1.3 million after they had spend $140,000 on reno. The couple decided to keep the apartment as a rental after spending $40,000, but it was then independently valued at $440,000. Obviously these windfalls were presented to the viewing public as complete profit after a period of 12 - 20 weeks renovating. My questions are these. Aren't these properties (and all flipping in Australia) subject to Capital Gains Tax? When is this required to be paid? Was the Stamp Duty factored into the purchase price, or is that additional to the price? (This wasn't clearly spelt out in the programme) Are there other fees and charges incurred in renovations by Local Council's, State bodies, etc, in undertaking renovations? (Whilst these weren't mentioned in the programme, they could have been included in the overall renovation costs.) The "profit" the couples achieved, would now, I assume, be subject to Income Tax? Do they have to be registered with some Building Authority in order to carry out these renovations? Are the renovations required to be inspected to ensure they comply with building codes in the various places? I would be interested to hear the answers to a few of these. There may be others as well, which, of course, get conveniently overlooked during the show.
  14. Le Pen Seeks to Broaden Her Support London Property Crashed 40% Thanks to Tax Increase Does Schäuble want Draghi to Exit the Stage Once & For All?
  15. I still can't get past justifying the upfront costs, let alone the real life expectancy of the batteries.
  16. The thing that worries me about battery units is half-life/usable life. It's a big expense that will lose their efficiency/effectiveness over time. That and the environmental impacts.
  17. The Fate of the Euro If US Election Were Held today – Trump Would Get More Votes Polls Show The French ZDF2 TV Interview of Armstrong
  18. The froggies have quite different platforms though (pro / anti globalisation). I'd have thought he would have made a prediction simply because that is a pretty important topic for him.
  19. another contender entering the market. Mercedes energy storage units headed for UK homes
  20. Only predicted that the winner would be anti-establishment. Both Macron and La Pen qualify as both main parties failed to make it to the final. The same would apply to Trump as he is non establishment, though he used the Republicans to get into power. Also applies to Brexit.
  21. Socrates doesn't know? Seems the perfect article to make a prediction.
  22. The French Elections & Socrates
  23. I completely ignore Australian politics but saw this in my linkedin feed: http://www.smh.com.au/federal-politics/political-news/malcolm-turnbull-to-abolish-457-immigration-work-visas-20170418-gvmw34.html I take it is either a bit of kabuki or desperation to thwart off a recession later this year.
  24. High house prices and record debt levels. Governments can print all they like, but eventually like banana republics, but who will accept it. The US gets away with it because they have the world reserve currency. The rest are not so lucky.
  25. What problem? I presume the increase in the price of housing? That's only happened in Melbourne and Sydney in this low IR setting cycle. Why is that? I don't read the Armstrong thread. Perhaps I should. The Australian government can not become bankrupt. It borrows in Australian dollars and can print more at will.
  26. It would not be appropriate because the RBA's loose policy exacerbated the problem. Eventually they will face the music due to some event that the government/RBA will not control. It could be Armstrong's expectation of bankrupt governments or some other event. The pendulum will eventually swing the other way.
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