very generally.80% of rental income, and 30% of salarymust be greater than repayments of all loans.

Previous years tax returns can be amended if you have forgotten to claim depreciation. But max you can go back is 4 years, generally

HiIf it is worth $420,000 then you could buy your wife's share which would be $210,000 (assuming 50% ownership).That means you could borrow $210,000 on top of your share of the existing loan $43,000 = $253,000 debt. you could borrow stamp duty and other costs too.Your wife would end up with $167,000 approx cash which you could use to pay for the…[Read more]

Sorry, I couldn't help myself.

"Have you tried property investing?"No, this is a knitting appreciation site!!!!!! I bet know one even even considered investing in property before. What's it like?

Your accountant cannot estimate depreciation. Have you had a QS in and done a report?Also any borrowing expenses or travel expenses? (includes driving to the accounant). Phone calls? interest ?

Well, I would imagine so, It would be like any other transaction. You just need proper invoices,

Prove.

ATO would require you to substantiate expenses etc if you are audited. They will probably look more closely at private rental arragements I imagine.

But add in non cash deductions such as depreciation and the tax he saves by negative gearing and the true cost may be much lower.Say $3000 depreciation and borrowing costs, loss = $12,500Tax back at 30% = $4,000Cost is about $5,568 paStill painful tho

ferdinandch wrote:
What you were saying is if I buy IPs and make it IO, don't use an offset account attached to it ?

No!If you borrow extra money don't deposit it into an offset account, even temporarily, before you use it.You should have any offset account on your PPOR loan first. If none, then have the offset on the IP loan.

yes, CGT only applies when you have sold it. The 5 years you had rented it would be subject to CGT. I think it could work 2 ways:Value at time income ceased – value at start = CGor5/30 years = 16% so 16% of overall gain.Either way You would only have to pay tax on half of this gain if you have rented out half. You may then get the 50% CGT discount too.

Shouldn't be a problem. But you will lose the CGT exemption on that part of the house that you produce income from. This may work out to be much larger than the small income tax savings you will make.

Yes, IO loan still the way to go.But get the new top up as a separate loan, and don't have the money from the top up placed into the offset as the interest won't be fully deductible.

Ideally you shouldn't pay down the loan in case it becomes an investment later. If you do pay it down and then want to buy a new place to live in then you will be worse off in terms of tax. Using an offset will still save you the same interest.But, this is just the numbers side of things. You also have to think about other factors such as being…[Read more]

Main residences are generally exempt from CGT.

Yes it is possible.You could personally lend the SMSF the money.

Thats good,but considered the tax ruling mentioned by Ashley?

Go back to the urine analogy. You have 1 L of mixed liquid. If you took out 50% then half of this would be urine.. Now just change the percentages around.11 L with 1L urine. You take out 1L = 9% urine.

Since you have mixed the borrowed money with savings then when you pay the interest on the loan only a small portion of the borrowings could be traced to the payment of interest.