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millerste
Feb 18, 2010, 07:51 PM
Guy's
What are the current ATO rules for a mum & dad investor who use the equity from their joint family home asset (eg $50k) to purchase managed share funds, however, the managed funds are in Dads name only.
Can Dad claim the total interest expense even though the home equity loan is in joint names and declare income from managed funds that are in his name only?
If so , does the same rule apply for a residential property investment - use joint loan equity from owner occupier home but purchase new investment home in Mum's name only.
Cheers
IntlTax
Feb 19, 2010, 09:17 AM
This forum only deals with U.S. taxes.
edtan
Jun 28, 2012, 04:48 AM
Anne and Carol conducted a cooking class. They
Collected $375 from the participants as registration
Fees. They used $180 of this money to pay for rental
Of the kitchen. Carol took the remainder of the $195
And $205 of her own money for Anne to buy food. Anne
Spent $351 (she has $49 leftover which she has not
Returned to Carol). Carol also paid $33 for
Stationery out of her money. The participants then
Paid a further $2330 to attend the class. If Anne
And Carol were to share the profits and costs
Equally, how much should they each get?
JudyKayTee
Jun 28, 2012, 05:39 AM
What do Anne and Carol have to do with taxes?
2dogsjb
Jan 31, 2013, 10:26 PM
Revenue (accrual based accting) is income from sale of goods & services once the good or service has been provided. It does not mean the monies received.
Gross Profit = Total revenue (inc. all open & closed AR for period been reported but not open historical AR) - COGS. GP = AR1 + AR2 + other) COGS. Where AR1 = current sales where monies have been collected and AR2 = current sales where monies have not been collected.
EBIT = Gross Profit operating expenses depreciation
Net Working Capital(NWC) = Current Assets (Inc all open AR historical and this period related) Current Liabilities. NWC = AR3 + AR2 Current Liabilities, Where AR3 = prior periods sales where moneis not collected and AR2 = sales where monies have not been collected.
Cash Flow of the firm = Operating cash flow + Capital Spending + Change in Net working capital
CF = (AR1 + AR2 COGS operating expenses)This year + Capital Change + ((AR3+AR2 Current liabilities)This year (AR3+AR2 Current Liabilties)Last year.
WHY is it that the cash flow calculation is not a double up of the sales for the current period where monies have not been collected. i.e. AR2.
AtlantaTaxExpert
Jan 31, 2013, 10:41 PM
2dog,
This is a practical forum for TAXES, NOT an accounting forum, especially one that answers what is obviously a HOMEWORK question, something we are specifically prohibited from doing.
JudyKayTee
Feb 1, 2013, 07:19 AM
And here is the exact wording: Ask Me Help Desk - Announcements in Forum : Homework Help (https://www.askmehelpdesk.com/math-sciences/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html)
Read this first - Expectations for the Homework Help Board:
Do not simply retype or paste a question from your book or study material
We won't do your homework questions for you. You were given the assignment for you to learn.
If you come up with your own answer and post it for us to critique that is within reason.
If you have some SPECIFIC questions that you couldn't find or didn't understand, we may help with that. But this is your assignment, so show us you have at least attempted to complete it on your own.
Thank you.
EddieZ
Apr 25, 2013, 10:54 AM
Hello,
In my 2011 tax return I used the insolvency option for a cancelled debt that resulted from a foreclosure on a rental property I owned.
I am thinking on requesting a short sale of my current home from my lender, if the my lender will not approve the short sale I might just stop paying my mortgage.
If I incur in another debt cancellation due to short sale or foreclosure, can I again use the insolvency option? Or since this is my primary home can I go the mortgage debt relief act way?
Thank you
AtlantaTaxExpert
Apr 25, 2013, 11:10 AM
Insolvency is still an option, as long as you can show conclusively that you are still insolvent.
The Mortgage Debt Relief Act is also an option since it is your personal home.