Salary sacrifice a credit card? What do you mean? Does the employer just pay the credit card for you each month by reducing the taxable wage by the same amount?If you pay a loan with a credit card then you would need to do a cash advance and then use the cash to pay. No lender would take the credit card payment. Same with rent, the real estate…[Read more]

Trusts don't come under the SIS Act or any SMSF laws – unless they are SMSFs.If your trust wants to borrow money you can lend it to the trust by entering into a loan conctract with it. This is best to be a written agreement.

If the tenant pays the bills then you could include it, but the amount they pay you  would be income i presume.

The hardest part will be to keep coming up with the deposits.To keep on borrowing you will need good rental incomes and a good wage. You will also need increasingly larger deposits. You can get the deposits by a combination of saving and growth in the value of the property.Have a look at the stuff Nathan Birch does and you can get a good idea on…[Read more]

I may be being too strict, but you never know. I have a friend who has been audited by the ATO and he had transferred money from his loan to his savings account, mixed with other money, and then invested it. They never picked it up or mentioned it so it wasn't a problem.But better to be safe and sure.

I think you should get some proper advice first.

amsaini15 wrote:

Terryw wrote:
If you do decide to use the offset method, then make sure you have no money in that account when you deposit the borrowed funds. If you do then you will be in a greater mess.

This is exactly what I am trying to do. Will keep funds in separate offset accounts so that funds for investment are not mixed with my…[Read more]

too late now. You have already paid the loan down. Any withdrawals now will be new borrowings and the deductibility will depend on what the funds are used for.It may work out better for you to sell house 1 and then pay down (or better into the offset account on an Interest Only loans (IO)) and then later go and borrow to buy a new investment property.

Michael,Did see your post there. Special disability trusts are just trusts set up for someone with a disability. If it is set up for the maintenance of the person with the disability and the disability is severe then there are many tax and centrelink benefits – the trust assets may not count as the person's assets up to a certain level, so someone…[Read more]

Looks like you have dug yourself into a bit of a hole.You cannot withdraw from the existing loan or borrow for the new home and have it deductible because you will be living in it.If only you had used an IO loan with a 100% offset account.

Hi GoneosIdeally you should set up a LOC for the $30k and use the money from there directly for investment.Borrowing and placing money into an offset would not be wise. I would advise not to do it that way.If you do decide to use the offset method, then make sure you have no money in that account when you deposit the borrowed funds. If you do then…[Read more]

 You probably should enter into a loan agreement with the trustee and then you could just pay the funds directly where needed.

Yes, why not!

You personally borrowed money and onlent to the trust so the trust should be able to claim the interest on this loan. BTW, you should have a written loan agreement with the trustee.The expenses for the reno and stamp duty would not be deductible outright. The stamp duty would be a cost to be claimed against a capital gain when you sell, and the…[Read more]

I think we have discussed this several times haven't we?If you borrow to invest that is ok. But you would be borrowing money to put into a savings account. You would later invest. This is not ideal because there is no direct connection to the borrowing and investing. You may get away with it though but technically the interest wouldn't be…[Read more]

What is the purpose. You cannot borrow for an increase in valuation. You also cannot refinance $1000 you paid into the loan last year – or youcan but the interest won't be deductible.I think this is dangerous. You shouldn't borrow money and place it in a savings account as that can break the nexus between borrowing and investing. see Domjan's…[Read more]

Amsaini,Are you saying you want to borrow an extra $25,000 and put it in an offset account?

I would suggest you think long term. How long would the property be negatively geared?

see how easy it is!

Why are you using that company? and why would you take tax advice from them? Would you take advice on nutrition from a person who worked at KFC?