You will have to read the Duties Act NSWI've read it but not with an eye to considering installment contracts.I can't see how duty wouldn't apply twice as there are 2 transactions and both would be dutiable transactions.

JohnDoe wrote:
Hi TerryYes we have that option as well. We are renovating the IP we are considering selling and it should be finished in 6 weeks – I hope. Plasterers are finishing this week. It depends what the numbers come out at.  We purchased for 130k in 2004.Will spend 80k on reno – needed restump, rewire, starightening, plaster, the works s…[Read more]

lizpaul wrote:

Terryw wrote:
i would only use a LOC secured on your current house and then use this as deposits with the main loans for each new property being IO loans.With that approach all the securities would be cross collateralised which is not good.

Terry, any comment on using loans instead of the loc for the deposits. A mortgage broker…[Read more]

Not really.The loss will be a capital loss so it cannot be used to reduce your taxable income. Can only be used to offset capital gains. If there are none in the same tax year then the loss is carried forward.If you do have a capital gain in subsequent years then the loss will be applied before the 12 month discount.

That is correct. One trust can distribute to another but there are complex rules to comply with. And If your existing are not in a trust already then this won’t work

JDIf you sell the IP while your wife has a negative income this may greatly reduce CGT. This may enable you to save more in tax than you would lose in FTB. Loss of FTB may only be for 1 year too.Also this may enable you to restructure and purchase a new property and set things up more effectively.

jasonlheath wrote:

kat13 wrote:
So pay extra in my current mortgage for my house I am living in and roll over the investment into another period of IO? Makes sense in a way, I was very confused about the benefits of doing IO as it seems the difference is really small between paying IO and P&I so I thought it might be better to pay P&I on the…[Read more]

Sorry, yes not really extra but in NSW no land tax free threshold for most trusts so a trustee may end up paying land tax where an individual wouldn't/

jmsrachel wrote:
That's a real shame. You are one of a few people that can actually explain a concept without causing a headache. Looks like i will need to look up to Boris for answers.

Thanks for your comments. I have been explaining these things so long now I know what is easily digestible.I must say there are thousands of consumers out…[Read more]

I agree. Keep them all separate.

Your dog is actually a client of mine. Is his name Boris?No, I am located in Sydney unfortunately.

Getting a SMSF loan is not really much more difficult than a normal loan in personal names. Setting up the strucutre and understanding it is slightly more complicated, but even this is not too much for the average person.But the more complicated it is made out to be the more fees that can be charged!!

You need careful planning and consider the following:- ability to get finance (most important!) without finance you are stuck- structure. Sole name, joint names, trust – unit or DT, or company (no).- injecting capital to the structure – gift or loan (probably loan, but from whom? interest deductibility considerations too)- asset protection – think…[Read more]

Confusing!Trust assets don't form part of your estate so you cannot leave them via a will but this may have some beneficial aspects if in future your will would be challenged (not effective in NSW though) and/or your child was bankrupt at the time of your death. So there is this estate planning aspect.Tax minimisation involved the trustee…[Read more]

Lin. Why do you want a trust. Ie what are you trying to achieve ?

Mr Burns maybe?

eg.$100,000 investment loan.$1000 cash.You could1. Park the cash in the loan or2. Park the cash in the offsetInterest result would be exactly the same BUTWhen you put money into a loan this is a repayment, andWhen you take money out of a loan this is a new loanSo with 1, you put $1000 into a loan of $100,000 and the balance becomes $99,000.If you…[Read more]

You will still pay tax on your taxable income if it is over $20,450.Your income will be the rent you receive. From this you can deduct the normal deductions such as rates, insurance, interest and depreciation etc etc.If this figure is over $20,450 then tax will be payable at the applicable rates.

You can still claim all the normal deductions if you are not working, but your income will be limited so your may not get much back if any at tax time if you have paid no tax.

Don't use a redraw loan as this is totally different to an offset and you will be worse off in the long run.IO loans eventually change to PI so if you keep the loan for 30 years it will be paid off. But the main reason not to use PI on an investment loan is that you will be paying down deductible debt. It may be ok once you have paid off your non…[Read more]