It’s that time of year when we are all thinking about tax – if only because we have been bombarded with ad for EOFY (End of Financial Year) sales and supposed bargains.
For strata residents, this is a particularly piquant period as you may have received a statement from your strata manager, as part of your levies bill, pointing out that you have taxable income to declare.
‘What income?” you ask. “I didn’t see a cent!”
The thing about this invisible bounty is that your scheme must be making money on something, renting space on common property, for instance, and that money may well be going into general funds to pay for whatever needs paying for.
But in NSW (and elsewhere) that is considered personal income, or at least your share is, as calculated by your unit entitlements (the figure used to work out your levies).
And because it is income, you have to declare it. Now, while that may have reduced your quarterly levies by a tiny amount, in some cases, albeit extremely unusual, it could push you over an income assessment threshold.
For instance, if you have calculated your retirement income down to the last cent and you find you are required to declare money you haven’t even seen, that could be a problem when it comes to tax breaks and benefits.
What can you do? Well, even if you’d rather spend it on a consoling muffin, there’s no point in asking your treasurer to send you the money rather than adding it to the strata funds.
Distribution of excess strata cash would require unanimous agreement of all owners – and you know how unachievable that would be. It’s complicated, even when you are trying to do the right thing.
One Flatchatter has asked this week if the money they make from collecting drinks containers for the Containers for Change charity has to be recorded in their accounts. You can put your 10 cents worth in HERE.
Elsewhere in the Forum
- When is the right time to investigate for possible defects? That’s HERE.
- Owner is planting her own trees and shrubs in common property ground. That’s HERE.
- If you only have to get two quotes for contracts worth over $30,000, what happens when GST adds 10 per cent to the cost? That’s HERE.
- Decoding (or trying to) the Design and Building Practitioners Act (DBPA). That’s HERE.
- UPDATE: Water damage from flat now up for sale, with repair bill unpaid. That’s HERE.
- UPDATE: How do you counter dodgy accounts and sweetheart deals in strata. That’s HERE.
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Tagged: by laws, committee, defects, forum, profits, revenue, Strata, tax
It’s that time of year when we are all thinking about tax – if only because we have been bombarded with ad for EOFY (End of Financial Year) sales and
[See the full post at: Forum: Taxing times with income you never see]
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
› Flat Chat Strata Forum › Current Page
› Flat Chat Strata Forum › Current Page