Limited recourse borrowing arrangements by SMSFs

Keeping You In The Know – Experts Advice With many trustees of Self Managed Superannuation Funds (SMSF) taking the opportunity to purchase investment properties in their SMSF, the requirement to enter into limited recourse borrowing arrangements (LRBAs) has caused some uncertainty with respect to compliance and taxation issues. SMSFs are generally prohibited from borrowing, but since 2007 there has been an exception where an SMSF borrows on a limited recourse basis* to acquire a specific asset, however very strict conditions need to be met. One of these conditions is that the asset is … [Read more...]

Small Business Owners- Compliance

Keeping You In The Know – Experts Advice I am often reminding Small Business Owners about the importance of record keeping and the issues concerning compliance, well for those of you who are either: just starting a business or thinking about starting a new business; or wanting to update your Small Business compliance knowledge. The Australian Taxation Office is offering FREE tax webinars (on-line sessions), on topics including Home-based Businesses, Concessions for Small Business, Issues for Contractors and more. There are 12 topics to choose from, so have a look and refresh your … [Read more...]

EXIT STRATEGY – Do you have one?

Keeping You In The Know – Experts Advice Is your business one of the few that actually has a documented exit strategy? An exit strategy is about leaving your business on your terms! And the only way to do this is to plan for the known AND the unknown. Baby Boomers are ‘coming of age’ (that is retirement age) so many small business owners will be exiting from their business to retire during the next 10 years, and are hopefully already planning for this. Some business owners, not yet ready to retire, will also be planning to exit their business, sometimes into another business or to take … [Read more...]

Residential Investment Property – Tax Obligations!

Keeping You In The Know – Experts Advice The Australian Taxation Office (ATO) has over the last couple of years been contacting rental property investors to set them on the straight and narrow regarding their tax obligations. Recently, the ATO sent letters directly to taxpayers who reported for the first time in their 2010/11 Income Tax Return, that they had an investment property. This letter was to assist their understanding of their tax obligations and how to avoid common mistakes in reporting on their investment. Investment property is a passive investment, which means that any losses … [Read more...]