General Deductions
This depreciation method is calculated as the decline in value based on the opening value of the asset each year.
What is the diminishing value method?
The name/code given to the disposal of a CGT asset
What is CGT Event A1?
This is 1 of the PSI tests that that tax payers can use to self-assess, with factors including; producing a specific test; making mistakes; and providing own equipment.
What are the results test?
Better have these on file before the end of the year - this document determines the allocation of the Trust's net income, to its Beneficiaries for the relevant financial year.
What is a trust distribution resolution/minutes?
Section 8-1 has two limbs - one of them being; a deduction incurred in gaining or producing assessable income Or carrying on a business.
What are the positive limbs?
The period of time that you can treat a previous main residence after you've moved out, and it is exempt from CGT when disposed of.
What is the 6 year Absent from Main Residence Rule?
This subtest, is where income comes from two or more un-associated parties, and your services must be provided as a result of making offers to the public.
What is the unrelated clients test?
Sorry Cuz you're not welcome - this is a choice by a trustee to specify a particular individual around whom a family group is formed.
What is a family trust election?
But I never claimed any home occupancy costs! This test determines whether you are not entitled to the full main residence exemption for your home.
What is The interest deductibility test?
A type of asset that is subject to CGT if it costs more than $10,000 to acquire the asset. Sorry Yacht owners!
What is a personal use CGT asset?
An entity whereby they have failed all PSI Tests
What is a Personal Services Entity?
This can be considered an "accommodation" provided by a trust - an amount of trust income which is appointed, but has not yet paid, to a private company beneficiary.
What is a UPE?
This is a precedent case in determining when income is derived / allowed to be considered prepayments.
What is the Arthur Murray Case?
This concession allows you to receive a 50% discount, but even disregard or defer some, or all of a capital gain from an active asset used in a small business.
What is the small business CGT concession?
Income that is not considered PSI as it earned from substantial income-producing assets, many employees or both.
What is a business structure?
But we've been doing this for years! This is an anti-avoidance provision, where a beneficiary is made presently entitled to a share of trust income. And a party other than the beneficiary receives a benefit in some way
What is section 100A
When all else fails - This the section of the ITAA 1997 allows the qualifying expenditure be deducted on a straight-line basis over 5 years.
What is black hole expenditure?
The capital gain from the disposal of an active asset may be disregarded if an individual under 55, pays the net capital gain into a complying superannuation fund (but only up to $500,000 - sorry Eddie Obeid!)
What is the small business retirement exemption?
This is the name and section of the individual tax return, where you disclose the net PSI to the person conducting the work.
What is I-9 Attributed personal services income?
Get to reading those trust deeds! - Typically this is found in the trust deed - The amount calculated under section 95 of the ITAA 1936, excluding any amount that would other be included pursuit to section 207-20(1) of the ITAA 1997.
What is the net income of the trust?