In this Issue:
- Lifestyle assets and CGT
- Memorable Quotes…
- A little bit of Trivia…
- Laughter is the best medicine
- SMSFs and Collectables – last opportunity to comply!
- FREE Copy of Our Book
Tax time is coming… and it’s good to get in early with your preparations for your tax return. That’s why we’ve got a nice little surprise to make it easy for you this year.
The attached 2016 Year-end Checklist for Individuals will help you work out what documents you need and give you the scoop on what tax saving strategies you can apply this year.
If you are not sure what items you can set off in your tax return, we’re always happy to help. Simply visit our Personal Tax page to make an appointment with us, or call us on 07 3399 8844.
Should you have any questions about the items published in this newsletter, please don’t hesitate to give us a call on 07 3399 8844… or stop by at our office for a coffee. We’re never too busy to sit down and talk to you.
Best regards from the Team at Straight Talk Accounting & Tax
Lifestyle assets and CGT
The ATO has advised that it has identified some instances where lifestyle assets, such as artworks and collectables, are not being properly accounted for.
They said that they want to help taxpayers with these kinds of assets comply and be aware they may be subject to CGT on disposal.
They said that it’s important taxpayers are aware that:
- items purchased for more than $500 on or after 20 September 1985 are subject to CGT, even if they are kept mainly for the personal use or enjoyment of your client;
- special CGT rules apply to items that form part of a deceased estate; and
- the date of purchase/auction needs to be accounted for, not the settlement date.
The ATO is currently working with insurance companies to identify owners of these sorts of assets.
Editor: Clients who may be affected should contact our office.
Memorable Quotes…
“Habits are like financial capital – forming one today is an investment that will automatically give out returns for years to come.”
Shawn Achor – Educator, Author, and Speaker
A little bit of Trivia…
Fun Facts about Board Games
Board games are simple fun and sometimes even seem rather old fashioned in this day and age, yet they are still loved by millions. Board games are also a source of seemingly endless fascinating bits of trivia. There are more than 50 versions of the game of Uno, available in special decks of such things as The Simpsons, Doctor Who, Avengers and so on.
In World War II, Allied prisoners of war were allowed to play board games by the Nazis, who even permitted the British government to send prisoners games. However one Monopoly box sent to the prisoners contained not the game but tools to help them escape, including real bank notes, compasses, a folded silk map and metal files.
The ploy worked and the prisoners were able to escape successfully. In 1988, the 50th anniversary of Scrabble was commemorated by the playing of a giant game in Wembley Stadium, where every tile was six feet long.
Laughter is the best medicine
A man goes to the doctor. “Doctor, that medicine you gave me isn’t working. Is there anything else I could try?”.
“Fill out this tax form,” suggests the doctor.
“How’s that going to help me?”, asks the man.
“I’m not sure,” replies the doctor, “but some of my patients say it gives them relief.”
SMSFs and Collectables – last opportunity to comply!
From 1 July 2011, SMSF investments in collectables and personal-use assets have been subject to stricter rules than SMSF investments in other assets (such as shares and property).
Editor: Assets considered collectables and personal-use assets include things like artwork, jewellery, antiques, vehicles, boats and wine.
However, SMSFs that already had investments in such assets before 1 July 2011 were given five years to comply with these rules (i.e., until 30 June 2016).
Therefore, any SMSFs with such investments need to consider their situation carefully and take appropriate action (if necessary) before 1 July 2016.
Such action may include (for example):
- reviewing current leasing agreements (items can’t be leased to or used by a related party, including business premises);
- making decisions about storage (items can’t be stored or displayed in a private residence of a related party, and decisions about storage must be documented and the written record kept); and
- arranging insurance cover (items must be insured in the fund’s name).
In addition, if the trustees of the fund are considering disposing of these items, they can be transferred to a related party without a qualified independent valuation, but only if the transfer takes place before 1 July 2016 and the transaction is made on arm’s-length terms.
If these requirements are not met from 1 July 2016, penalties may apply.
FREE Copy of Our Book
In this book, Robert Bauman lays out 10 steps anybody can follow to become truly wealthy, and reveals ‘money myths’ and ‘inside secrets’.
Just contact us on 07 3399 8844 to claim your gift and we will send it out to you.
About Straight Money Talk—A Straightforward Plan for Financial Independence
WHAT PEOPLE ARE SAYING ABOUT THIS BOOK:
“I’ve read many financial books and found this one to be up there with the best. It can really kick-start your journey to get your financial situation into great shape.”
– Dr. Joe Vitale, author “Attract Money Now” www.attractmoneynow.com
“Robert has done a fantastic job on this book. My views on how to handle money and how to educate my kids to learn the value of savings have totally changed now. This is an excellent book to guide you to creating great financial wealth in your life!”
– Keith Abraham CSP – Professional Speaker and Best Selling Author
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.