Definition of 'Serious Investor'?

Discussion in 'Accounting & Tax' started by House, 3rd Oct, 2015.

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  1. House

    House Well-Known Member

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    Reading about tax deductions for 'serious property investors' but haven't really been able to find a definition of what one is. Is it based on % of income derived from IP's, number of IP's owned or something else?

    Wondering at what stage can I start claiming for education, travel etc?
     
    House, 3rd Oct, 2015
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Sophisticated investor is the term you're looking for. There's a definition on the asic or ato websites, it was 2mil equity from memory.

    I don't think the 2nd part of your post is related to the 1st.
     
    D.T., 3rd Oct, 2015
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    So 2 Sydney properties or one in a decent inner city property.

    Not really reflective of sophisticated investor.

    Like doesn't everyone in Sydney have a couple of million in equity?
     
    Scott No Mates, 3rd Oct, 2015
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  4. sanj

    sanj Well-Known Member Premium Member

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    I think it's 2.5m in net assets outside family home or minimum 250k income for previous 2 years. I coild be wrong though im going off memory
     
    sanj, 3rd Oct, 2015
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  5. hobo

    hobo Well-Known Member

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    Yes, that's my rough recollection as well (I'm not there, sadly! :( )
     
    hobo, 3rd Oct, 2015
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There is no special treatment for 'serious property investors'. The phrase will not be found in tax legislation.

    The 'sophisticated investor' concept is from corporations law and relates to financial services and not taxation and doesn't allow for any extra tax benefits but relates to the amount of information needed to be disclosed with financial products etc.
     
    Terry_w, 3rd Oct, 2015
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    I thought I was a sophisticated investor just because I wore a Panama hat & white shoes.
     
    Scott No Mates, 3rd Oct, 2015
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  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Tax law permits an existing investor to claim these deductions. Sometimes. Thats the benefit of having a personal tax adviser.
     
    Paul@PAS, 3rd Oct, 2015
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  9. bob shovel

    bob shovel Well-Known Member

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    What's the correlation with kit kit's?
     
    bob shovel, 3rd Oct, 2015
    #9