The tax man

[knocker]

Trainspotter, is this thing tax deductible?

Doesn't he use it for work. Then it would be tax deduction. Wonder if you can claim travel for boats like you can for cars? Anyone know? i.e.

 

[GumbyLearner]

Doesn't he use it for work. Then it would be tax deduction. Wonder if you can claim travel for boats like you can for cars? Anyone know? i.e.

What kind of corporate personality (ie. Pty Ltd, Trust, Partnership, Skase wannabe etc..) owns it?

 

[Buckeroo]

Doesn't he use it for work. Then it would be tax deduction. Wonder if you can claim travel for boats like you can for cars? Anyone know? i.e.

Entertainment expenses. Providing on board business meetings for ASF posters

Cheers

 

[gav]

Call for reforms of tax lurks as negative gearing frenzy hits

http://www.news.com.au/business/money/story/0,28323,26029676-5017313,00.html

"LANDLORDS are claiming $11 billion in tax deductions a year as a negative gearing frenzy grips the property market."

But what I found interesting, for those here with businesses whinging about how much tax you pay...

"As the Henry Review examines how to reform our tax system, the Herald Sun also revealed more than half of Australian companies pay less than 5 per cent tax.

Treasury figures reveal only a quarter of companies, or about 92,000 businesses, pay more than 15 per cent tax on their total earnings."

"The corporate tax rate is 30 per cent, yet 182,000 companies pay less than five cents in the dollar on their total earnings. And thousands pay no tax at all."

Sounds like you business owners out there need new accountants! :

One of my income streams taxed me incorrectly this year, and I've been left with a nasty bill also.

 

[tech/a]

Why not just sell up and retire. Its what I did. no point running a business nowdays, especially in this economic climate, and things will get worse

Rubbish.

I have no intention of retiring.
My Father retired at 54 at the time considered wealthy.
Today nothing more than a pensioner (who owns a 42 acre farm).
His $$s have been eroded by inflation and so to will those who sell up today and retire.

I'm happy to have others run my company while I enjoy what I have of life.
I love the challenge of business and relish these times---where my competitors sound like you and I make sure they hurt as much as possible.

Business is about relationship building and those built in tough times generally pass the test of time.

 

[trainspotter]

Doesn't he use it for work. Then it would be tax deduction. Wonder if you can claim travel for boats like you can for cars? Anyone know? i.e.

LMAO ... When she is used for commercial purposes then the running costs are part of the expenses that are used to LEGALLY minimise the overall nett profit to the parent company ie diesel. When she is used to harbour cruise/entertain then she is being used for PRIVATE purposes which you cannot claim as a deduction. You cannot claim a travel allowance for boats.

 

[trainspotter]

Entertainment expenses. Providing on board business meetings for ASF posters

Cheers

YES Buckeroo .... You are going to be my next guest speaker at the AGM. All deductible and minutes of the meeting will be recorded and handed to the accountant who will LEGALLY claim this cost under expenses. Can anyone tell me why I am paying a fuel excise on the diesel that goes into my boats when there are no roads in the ocean? I pay a "Marker conservation" fee to the DPI for all the navigational markers by the way. Alright ....... I do claim back the fuel excise as per Diesel Fuel Rebate Scheme introduced in 1982.

 

[gooner]

LMAO ... When she is used for commercial purposes then the running costs are part of the expenses that are used to LEGALLY minimise the overall nett profit to the parent company ie diesel. When she is used to harbour cruise/entertain then she is being used for PRIVATE purposes which you cannot claim as a deduction. You cannot claim a travel allowance for boats.

Trainspotter,

If you use it to travel from home to work, not deductible. But if you use to travel between two work locations then it would be tax-deductible. So if you use the boat to travel between your office in Melbourne and your office in (ahem) the Whitsundays then running costs are tax deductible.

Of course you need to have an office in the Whitsundays.........

 

[Buckeroo]

YES Buckeroo .... You are going to be my next guest speaker at the AGM. All deductible and minutes of the meeting will be recorded and handed to the accountant who will LEGALLY claim this cost under expenses.

Anything to help TS and I will be sure to charge you astronomically so as to cover all operating & depreciation costs of your humble yacht.

Cheers

 

[trainspotter]

Trainspotter,

If you use it to travel from home to work, not deductible. But if you use to travel between two work locations then it would be tax-deductible. So if you use the boat to travel between your office in Melbourne and your office in (ahem) the Whitsundays then running costs are tax deductible.

Of course you need to have an office in the Whitsundays.........

Like my post says Gooner ... Commercial operations, then all expenses are deductible. Private use is not tax deductible. It is a floating office so technically I could be a right bastard and claim the lot but thankfully my accountant is doing the right thing and making sure that a percentage is used for private use.

 

[trainspotter]

Anything to help TS and I will be sure to charge you astronomically so as to cover all operating & depreciation costs of your humble yacht.

Cheers

LOLOL ... funny how the income matches the expenses at every AGM I have attended !!!!! Pffffffffffffffttttttttttt !!!!

 

[Macquack]

LMAO ... When she is used for commercial purposes then the running costs are part of the expenses that are used to LEGALLY minimise the overall nett profit to the parent company ie diesel. When she is used to harbour cruise/entertain then she is being used for PRIVATE purposes which you cannot claim as a deduction.

... Commercial operations, then all expenses are deductible. Private use is not tax deductible. It is a floating office so technically I could be a right bastard and claim the lot but thankfully my accountant is doing the right thing and making sure that a percentage is used for private use.

Trainspotter, is that 'fair dinkum' your office?

As a matter of interest, what percentage to you attribute to private usage?

 

[Krusty the Klown]

Entertainment expenses. Providing on board business meetings for ASF posters

Cheers

Sorry to burst the bubble guys, but entertainment expenses for a business are no longer tax deductible.

I hate being a pedant!

 

[trainspotter]

Trainspotter, is that 'fair dinkum' your office?

As a matter of interest, what percentage to you attribute to private usage?

One of them yes. How else would I have so many photos of the same boat with me on it? Goes with the pearl farm. One of the aerials plugs into mobile phone for network coverage which in turn plugs into laptop. Laptop plugs into bigscreen TV for presentations. Also handy for excel spreadsheets to be placed on screen to show the workers on the farm which shell to go and get from different lines. Picture of Seadoo on deck with the 24 footer grey boat being towed behind. Other picture is from the bow looking at sunrise and the "splash"

Haven't really sat down and worked out the percentages but it depends on the usage at the time. Guessing about 35% is private stuff. Harbour cruises and stuff like that cannot be attributed to the pearl farm.

Krusty - If I have an AGM on board the boat and a "guest speaker" (we just happen to have it at the pearl farm) then I think you will find it is tax deductible. If not then I am in a world of pain cause the accountant has been doing so??

 

[trainspotter]

Pearl farm operation is from November until June/July depending on water temperature. Therefore if boat is used July thru to October cannot claim expenses. Crappy COLD weather anyhow during winter months so boat tends to have maintenance performed (desal plant filters and rubbers replaced etc).

Now back to the bloody tax man - As I have a more complex arrangement with 4 seperate companies performing seperate duties it becomes a nightmare with paperwork. I guess I am just p!ssed that every time I look around I am paying more out, either GST or tax to the ATO yadda yadda yadda. It would be easier just to stop playing the game and stop productions. LOL

 

[johnnyg]

My Father retired at 54 at the time considered wealthy.
Today nothing more than a pensioner (who owns a 42 acre farm).
His $$s have been eroded by inflation and so to will those who sell up today and retire.

Putting that one down in my notes. Might have to start charging happy customers for your words of wisdom tech.

 

[gooner]

Rubbish.

I have no intention of retiring.
My Father retired at 54 at the time considered wealthy.
Today nothing more than a pensioner (who owns a 42 acre farm).
His $$s have been eroded by inflation and so to will those who sell up today and retire.

I think the lesson there is to ensure that when you retire (particularly if you do as early as 54) then you put a fair amount of wealth in assets that are not eroded by inflation - property, gold, energy shares, equities generally ('cept banks of course).

If you retire at 54, your life expectancy is probably another 30 years - that's a long time to survive if you only have cash at 4% pa.

And tax is shocking on cash - no 50% CGT benefit.

Must say, current super rules work OK - all money in super is tax free when withdrawn as I understand. So get $1m of equities in your super fund, you can pretty much live off dividends at 5% and still get capital growth.

 

[Wysiwyg]

Bill 'shock' Shorten has already signalled his intention to deny franking credits to retirees (pollies can still get them though!). The Coalition aren't blameless either, with their current $1.6mill tax cap on super balances.

It's called social engineering, and the elderly are seen as easy targets. No matter that they've slaved away for 40 years and paid all their tax.

Richard II, now became king of England. John of Gaunt, Richard's uncle, took over much of the responsibility of government. He was closely associated with the new poll-tax (a tax on every adult) that was introduced in February 1377. Four pence was to be taken from every man and woman over the age of fourteen.

In 1379 Richard called a parliament in an attempt to raise money to pay for the war against the French (later known as the Hundred Years War). After much debate it was decided to introduce a second poll tax. It was to be a graduated tax, which meant that the richer you were, the more tax you paid. For example, John of Gaunt had to pay £6.13s.4d., whereas a poor peasant was only charged 4d.

The reasoning behind taxation stretches way back and doesn't really fit the definition of social engineering . Labor want to raise more funds to cover their profiligacy when next elected government. Liberal are near running a surplus budget for the first time in 10 years. (2019-20)

 

[willy1111]

Bill 'shock' Shorten has already signalled his intention to deny franking credits to retirees (pollies can still get them though!)

Geoff Wilson from WAM Capital is taking the fight to them with a petition - has been getting a bit of media coverage, but only has 17,000 odd thousand signed the petition.

With more than a million people effected by it, surely he should be able to get a lot more signatures, just a matter of getting the word out there.

For those wanting to sign the petition http://wilsonassetmanagement.com.au/petition/

 

[SirRumpole]

ATO computers can't make legally binding decisions.

http://www.abc.net.au/news/2018-10-05/tax-office-computer-says-yes-federal-court-says-no/10341548