wealthyjvd wrote:
Thanks for the contact Terry, however all my tax returns are completed, are you saying he will charge $275 to tell we whether or not something is a deduction or not?

Yes.

It is not like asking can I deduct socks. It is a complex situation where you will have to describe your circumstances and the development project.

wealthyjvd wrote:
Excuse my ignorance I have very little knowledge of taxation, so any help would be much appreciated.

He did mention that the intention was to add value to the property or something along these lines, and because I made a loss and I'm not continuing with the project, these can be deductible..?

Perhaps not deductible.

But…[Read more]

Purchase costs such as these are generally not deductible, but if you are conducting a business then maybe.

johnnyhill wrote:
Terryw – No I don't use the LOC for personal expenses…. Strictly for IP related expenses, council rates, etc.  

In that case it is possible that all the interest on the LOC would be deductible – depending on a few things so check with your accountant.

johnnyhill wrote:
Thank you to everyone for your responses.

TerryW – I'm not quite sure how you came to the conclusion that  little or none of the interest on a LOC linked to an 2 IPs would not be tax deductible. The LOC is in no way linked to my PPOR loan. Maybe I have incorrectly explained my situation and it has been misunderstood.

Sorry…[Read more]

johnnyhill wrote:
Hi All,

Newbie here so be gentle… I'm looking for advice of my current situation and happy to take on professional advice to realise any long term benefits.

Here is my situation. Many years ago my wife and I bought our first IP, we bought it while in our early 20's whilst still living with family. Standard loan which we…[Read more]

jate wrote:

Terryw wrote:
Why are you paying interest with the LOC?

What I meant is that my LOC account, which is used 100% for Investment purposes only. Such as deposits for IP#2 and IP#3.
I am planning on tax-deducting the debit interest incurred on this account.
Currently CBA has it setup with the debit interest for this LOC account is…[Read more]

Cherry wrote:
Hi all,
Hope somebody can help with this query.
We have an flat in London, with a large amount of equity. At the moment it is on a Capital repayment mortgage and we have to pay tax on the income we earn from it. I was thinking a better option would be to re-mortgage it on an interest only loan and invest the money in a property…[Read more]

I charge $1650 for the SMSF and another $1100 for a company as trustee, but I am a solicitor and include legal advice in relation to the structure of the trust, and trustee company and include BDBN and other succession advice.

madbray wrote:
Hi
Thanks for the quick responses.

The strategy that I have been taught, through my parents & their accountant, is based on negative gearing & tax minimization. I have implemented this strategy myself and as mentioned in previous post I do have investment homes.

Furthermore, the accountant that i currently use (same accountant…[Read more]

Hi

I am qualified in Law, finance, financial planning and tax and am licenced to give taxation, credit/loans and legal advice. In Macquarie street.

If you can service, come up with a deposit and have clean credit then generally no probs to get many loans approved. Tonight I am working on 4 for a client who already has 3 in the past 12 months – for example.

The typical structure is Mum and Dad. Dad buys in his name for short term tax benefits. No thought given to anything else. Cross collateralised with the home. Mum on there as a guarantor – just to add to the worsening asset protection issues.

But, do you want to be typical? Prob not!

If you are serious you will be looking at trusts, whether now…[Read more]

For tax purposes just consider A and B each own different properties.

If A is living in it A could claim it as the main residence-usually anyway.

If B is not living in it then B could not claim it as the main residence.

If B is not getting market rent then no deductions.

If sold B would pay CGT on the profits, but this may be able to be…[Read more]

DerekLangan wrote:
Thanks everyone for backing up Jamie. Terry I really didn't need to be told not to waste his time…. I think as a potential investor I am able to ask questions and speak to a few brokers before deciding on who to go through, how else would I learn anything? I worked as a travel consultant for over 3 years and do you think I…[Read more]

TheNewGuy wrote:
Thanks Richard, that's an option I hadn't considered. You might have to explain it to me in a bit more detail though, but is it something like:

Assume I have saved the 10% deposit of a $350000 house. ~ $35000.

The $35000 sits in an offset account against my PPOR.
The bank then puts a freeze on the offset account so I can't…[Read more]

I agree that we should have more discussion of SMSF – this is not brought up enough.

Ivan, it is not a product, but a strategy. Lend your SMSF money and it borrows the rest from a bank.

Rather risky I think. What if you forget to exercise the option on time – if your exercise is ineffective or defective. Plenty of cases where this has happened.

The Newbie Investor wrote:
Hey Guys I am 21 years of age and just read Steve Mcknights book, I am inspired. I want to begin my property portfolio and wanted to ask, if I was investing in property should I set up a business account or trust ?? Because say I had multiple properties it would be safe to not have them under my own name right?? How…[Read more]

DerekLangan wrote:
Excellent, I didn't realize Jamie was the one you were talking about from earlier in the post but thanks for the referral. I will definitely talk to Jamie before I go ahead with somone else.  

I am sure Jamie would like to talk to you, but if you are going to go ahead with someone else then don't waste his time.