Thats my understanding too. My trusts have sold many properties but I must say I am not sure exactly how it works.

Alexia
What if your trust paid $1000 for insurance. Would you claim this if it would result in a loss?

A lease is a legal document, an agent wouldnt be allowed to add clauses unless probably allowed by the residential tenancies act.

If the seller is the same you would, or if associated persons. See rev rulng DUT 36http://www.osr.nsw.gov.au/lib/doc/rulings/rrdut36.pdfand s25 Duties Acthttp://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s25.html

AlexiaWhy is it different under a company or a trust? Your company or trust would also want to reduce taxable income wouldn't it? Otherwise you would end up paying more tax.

mike h wrote:
Are you looking to purchase the new property to live in? Generally, its not recommended to purchase your house in a trust because: 1. You do not get the main residence CGT exemption and will have to pay CGT when you sell. 2. You will have to pay land tax (although some trusts do not). I know very little about family law, but I…[Read more]

mike h wrote:
Are you looking to purchase the new property to live in? Generally, its not recommended to purchase your house in a trust because: 1. You do not get the main residence CGT exemption and will have to pay CGT when you sell. 2. You will have to pay land tax (although some trusts do not). I know very little about family law, but I…[Read more]

pale ale wrote:
Hi everyone, I have been studying these boards for a while now but cannot find an answer to my specific situation.I have an investment property worth 380k, slightly negative geared.  I currently only owe $13k as I have been paying extra into the offset.  I can redraw $64k.I would like to buy another IP, worth about 500k.Is it b…[Read more]

The only way to minimise tax is to reduce your taxable income. You could do this in 2 broad ways.1. earn less2. Find more tax deductions(or 3. combo).

The mum would likely have to give a guarantee, but being vendor finance maybe this could be avoided.Realistically, if something does go wrong the trustee in bankruptcy are not really going to be chasing anyone for $10k as it would be considered too small and not worth the bother and expense

If you borrow from the company and then use the funds for deposit etc on an investment property then the loan would be investment related and the interest would be claimable by the owner of the property. But the company would also be receiving interest as income so this would be taxable too.

If this was set up with the intention to put property out of reach of creditors it may be able to be voided under the Bankruptcy Act if your friend later goes bankrupt.You also have to look at uncommercial transactions. Is he paying market rent etc to the trust. Also have to look at gifts to the trust – where is the $10k now for example.But if it…[Read more]

For asset protection reasons you wouldn't want the company to own the property (tax reasons too!). Also make sure you cover getting the $60k from the company bank account. You can't just use it, you will need to get the company to make a dividend or some other payment or you will need to draw up a special loan agreement.

negative gearing is a good way to save tax, but this may not help you save in child support. I am not sure, but they will probably have a formula to add back any negative gearing benefits so that you would have to pay on gross income before deductions.

” target=”_blank”>negative gearing is a good way to save tax, but this may not help you save in child support. I am not sure, but they will probably have a formula to add back any negative gearing benefits so that you would have to pay on gross income before deductions.

negative gearing is a good way to save tax, but this may not help you save in child support. I am not sure, but they will probably have a formula to add back any negative gearing benefits so that you would have to pay on gross income before deductions.

I think you will find that there is a assets test. 2 tests actually. You can have a PPOR up to $xx without it affecting payments, or if no PPOR then assets up to $YY.

Yes, I agree with Jamie. Fix it now before getting more tangled. Or fix it at the time you go for the new loan.

Why go with CBA? Their offset is not fully transactional.And, why have an offset on an investment property loan? It would be better on your home loan, assuming you have one.

Placebo_vegan wrote:
Hi,You will have to pay capital gains tax on the increased capital value of the property from the date you rented the property out. You will need to get a registered property valuer to give you a retrospective value on the property for the calculation to be made. The valuation needs to be as high as possible to limit your…[Read more]

What if rates drop further?What if you want to sell?What if you want to access equity but your bank won't let you and you need to refinance?