If you had a $500,000 loan and borrowed $400,000 off your friend and placed it in the offset and paid him 3% then:$100,000 at 7%$400,000 at 3%= better off for you.

Possibly income tax rather than capital gains. Costs will be appoortioned between the two. GST likely to be payable too.

probably because of the recent flood of spam messages. One spammer had 246 posts up in a matter of hours os I think some of hte replies here have been deleted because they were spam.

It is largely too late now as you have used the money, but using a DT could give some additional asset protection. You may even be able to set up a post death TT for up to 3 years see s102AG ITAA 1936. This may be tricky though it you have spend the cash and it cannot be traced.

NM,I wouldn't like to say too much public, but you could have utilised a dsicretionary trust and possibly a post death testamentary discretionary trust depending on the circumstances.

Terryw wrote:
Perfect structure NM. Can't get much better than that.

Hi NMI just read your other post about the inheritance. You could have structured this much better by utlisiing some asset protection techniques and could have possibly set it up more tax effective too. Still doing well though.

hi KarlA LOC is no good for a normal loan. In fact it can be very very bad if you were to use one on your home and to later rent it out.What is ideal is this:$100,000 home$80,000 loan. This can be IO or PI with 100% offset account. All rents and incomes go into this account.After your home grows in value:$200,000 home valueoriginal loan is…[Read more]

Perfect structure NM. Can't get much better than that.

Many tax issues with LOCs. You should avoid them for general use and only use then to access equity for further investments.

The main reason is that you should pay off nondeductible debt first – ie home you are living in. If this is paid off you could use IO or PI for investments. using IO could help spread your investments more though.

It should be just a mathemetical calculation in that case???? Which is larger 0.05% of the loan or $395?

Yes,  the Fin planner has admitted he got it wrong again! 2 things wrong with the one client. That could have been very costly!Thanks Mike,

ATO has a new online 'calculator' on GSThttps://expertsystems.ato.gov.au/scripts/net/GSTProperty/Introduction/GSTPropertyIntro.aspx?Task=da80fe99-4af2-4f1c-87e8-e0c361999fb6&NavGraph=Home&View=HomeView&PID=68&ms=Tax%20Professionals

You could get hte package fee waived and then go back later and complain about the high interest rate!

Refinancing won't help with CGT though

trevj wrote:
Hi,Currently have IP in my name with significant capital gain.The wife has significant share losses in her name.Is there anything i can do to offset the gains with the losses ?I believe i can  transfer the IP to my wifes name with no stamp duty but when this occurs does a CGT "event" occur at this point in time so that i would have…[Read more]

This is the date for that the land tax in NSW is calculated on. So buying on 1 Jan instead can mean you have 1 year without having to pay.

New year.

Anthony, Yes read that ruling and it makes it clear that it woudn't be possible.I am surprised that this Fin planner put it in writing in his statement of advice even though it is clearly prohibited. he didn't know about that ruling it seems.He has also suggested that my friend use the recontribution strategy to bring down the taxable component of…[Read more]

BoneyDon't forget to make sure you set up good wills – both and wife. Consider who you would want to be guardian of your children if you were to both die before they reach 18.