Fins 2643 Potential Questions
1) When it comes to investing in property, it is generally a huge decision to be made by Australian households. What are the important factors that a person needs to consider before going ahead with such purchase?
* Costs: on-going costs such as council rates, maintenance costs agency costs etc Taxes, such as CGT, GST, stamp duty Price of the property * Possibility of capital growth * Address: social network advantages * Macroeconomic circumstances: interest rate, property price etc * Income level: liquidity
2) What are the advantages and disadvantages of investing in property? Despite economic downturn in recent periods, there are various incentives provided by …show more content…
Must not fall in the Negative limbs: an outgoing or loss must not be for personal reasons, must not be a capital outgoing, must not be non-assessable purposes or excluded by legislation.(elaboration)
There must be a connection between the deduction claimed and the taxpayer’s income, which means if the taxpayer didn’t incur these expenses there would be a reduced ability to generate assessable income. * Specific deductions are set out in the legislation and specify the rules for allowing that deduction, unlike general deductions, the 2 positive limbs and 4 negative limbs.
7) Given the same dollar value, an offset is more tax effective than a tax deduction which allow government to implement their