It’s a nightmare. I’m going through the ATO website and trying to figure out what’s going on.
As an individual we all allowed 50% discount if we hold it for more than a year.
So the rental is pretty much zilch. We are only making 30K but because of associated costs it’s pretty much negligible.
The beach house is another matter. We’d be 200K more but we’ve spent money renovating it. So not sure if it counts.
Then I think we still get 50% discount on it. The agreement is that he pays my tax for this financial year.
Plus I’ll be buying an apartment thus my capital gains will end up a capital loss?
I absolutely love investing, in particular stocks, bonds, and mutual funds. Having a conversation with someone about retirement funds is my idea of a good time (I know, I’m completely pathetic!). So you would think I’d have a handle on taxes, particularly gains right? No… my head spins when I have to figure all of that out. I always feel like a complete and utter fool at tax time; my accountant probably answers the same question from me at least four times! – Marty
Oh Marty it’s so complicated. I just give up altogether. I just let the accountant do whatever. Next year I’ll have to find a new accountant. Our accountant is ummmm not my type. His ex though is a good lawyer.
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