Reducing tax again

Discussion in 'Accounting & Tax' started by ellejay, 30th Aug, 2020.

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  1. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
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    2,192
    Location:
    Kimberley and NZ
    I got myself equity locked with some properties in NZ. Two properties are unencumbered and because I'm not working I can't access any of the equity, not one cent. I don't want to rent them out I just want the funds to put into developments. I've been told to expect $120k tax bill. I know this has been asked before but any ideas to reduce this? Too late to change the structure. I'm buying a property atm to develop which should offset some tax. Can't get an appointment with my accountant this month.
     
  2. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,192
    Location:
    Kimberley and NZ
    Just seen @Terry_w 's very helpful tax tip on this subject. Increasing deductions looks to be the way forward. Any advice re putting funds into super? I've got an smsf that could do with a cash/ equity boost. I've just got one very average IP in there so could this be an opportunity to boost my smsf?
     
    Last edited: 30th Aug, 2020
  3. Paul@PAS

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

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    Location:
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    Property that isnt income producing wont access deductions
    SMSF limits on acquisition are governed by s66 of SISA which may prohibit or restrict the SMSF aquisition perhaps. But the busienss real property exemption could be a exception. But a smsf would need to hold the cash as a lender wont lend to a smsf if you arent working either and a NZ property wont be acceptable to smsf lenders anyway
     
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