You cannot claim any interest on money borrowed and gifted to a discretionary trust. If you loan the money to the trust you can claim the interest but not if you charge the trust less interest than you receive.

I take it these properties are in Victoria? Have you considered CGT too? Part IVA? It is an excellent strategy, but be careful

You can sell at any price, but because the parties are related you could only claim tax on the basis of market valuations. Increasing the sale price probably won't mean any increase in loans. this may mean no effect on…[Read more]

Your smsf can own units in a unit trust or shares in a company. see SIS reg 13.22C. But any property owned by the trustee of that trust cannot be mortgaged or charged in anyway.

Sounds like you are relying on luck. Probably the wrong property in the wrong area. Is it regional?

You would have actually lost money on this property considering the interest and other payments and inflation.

What sort of rent return?

Your SMSF cannot lend to a member or an associate of a member. s71 SIS Act.

However, there is a new product on the market which allows a person or an associate to indirectly borrow money from a managed fund which comprises super money. This fund lends the money out and takes a second mortgage behind a 1st mortgage of 80% with a total borrowing up…[Read more]

Matty_r wrote:
ok, thanks guys. We popped in and spoke with two local bank managers and they were the ones who said we couldn't do it.
The reason we need to do this is my ex wife (who I have one child to, and pay monthly maintenance) took me for everything years ago and is very vindictive woman. My wife has owned this house on her own for a…[Read more]

Yes, that is for interest – what is the tax rate in HK? Or other tax haven, maybe lower.

But you are looking at tax on your rental income because you would possibly be positively geared because of the money in the offset. Maybe consider working out the effects if you took the money out of the offset and put it into a term deposit in Australia.…[Read more]

I would say $2,000 to $20,000 to set up. Def have a company as trustee and I agree with Shahin St G is one of the best lenders out there.

But you would need to consider currency risk – fluctating exchange rates.

As a non resident you would be paying much higher tax than residents. It may work out better for you to take your money offshore where it could be earning higher returns without the tax. This in turn would increase your deductions for the residential property here

First thing I would do is to look at the centrelink website and try to ascertain what the assets test and the income test mean for them. They may not qualify now, but they may be close or may qualify in the future for a pension. This would probably change their plans a bit.

Darrly,

I agree.

I have a client now who is going to be bankrupted soon. He did his own asset protection planning and thought he was smart buying a commercial premises in a company rather than his own name, Guess who owns the shares!

Are you a resident for tax purposes?

Consider land tax as well. This is likely to be a large expense as trusts do not get any tax free threshold so 1.6% of the land value for all land owned by trust – each year too!.

Being a director has no bearing on tax. Trading company should not hold assets or be trustee. It could be a beneficiary though, but this may mean it starts to hold…[Read more]

Yes, its happened to me.

You can get an order that they have abandoned the property so that you can legally retake it and a judgment that they owe you money. You can then pursue them for the money owed – this could be a major hassle though. I had about a $2000 judgment and just let them go.

Sounds like a reasonable fee. Nathan is very sought after these days.

What is he charging?

It could be possible.
Reg 13.22C SIS regs

Is this a coincidence? Two Jamies in a threat with one posting about passing go and the other running a company incorporating 'pass go".

wilko1 wrote:
Terry could you give a example of how having 2 or more directors all giving personal guarantees would hurt serviceability moving forward.
Am i wrong in thinking. Person A, B and C have signed personal guarantees. Net loans in the trust 1.5 million all for investment purposes. Person A then wants to go off and buy their own PPOR or…[Read more]