a company that provides consultants.

anntoro was a 1 post spammer whose only purpose was to get their link to a dodgy overseas site listed.

HiYou have to be careful with the usage of LOCs it is possible to contaminate them from a tax perspective. Firstly, withdrawal from a LOC is new borowingsDeposit into a LOC is a repayment of a loan.The easiest way to explain is with an example.say you had a $100,000 loan as a LOCYou get your wage for $4,000 and place it in the LOC. It is now down…[Read more]

slowachiever wrote:
Could someone comment on Lines of Credit ,a bit concerned on these, never used before and a broker has suggested I convert my current loan to this and my accounts I have at other banks .Take out a line of credit on a property I own outright to release equity, to get ready for buying more property.I am used to having my pays…[Read more]

I just reread your post and see that you are renting now. So at the moment it has no effect.But if you could have problems in the future. This $100,000 is basically cash, but has been used for investment purposes. Therefore there is less cash for you to use for personal items. If you ever buy a new house to live in, for example, you would have…[Read more]

Hi N,Good. But the $100,000 for the shares, did this come from your offset account?If so you are not doing it tax effectively.

NikNakPadyWack wrote:
Hello all I have an IP that was bought 3 years ago as a PPOR. We have one of those rocket mortgages from Westpac. Our wages went into the offset facility and we paid extra off our mortgage. A year ago, we decided to rent it out as an IP and rent ourselves. We changed our mortgage to interest only, had the income from the…[Read more]

You should, ideally, be setting up a separate loan for the deposit from the PPOR. ie try to have 2 loans secured on this property. One for the non-deductible portion and one for the investment portion. If you just do a redraw you will be at a tax disadvantage.The new split on the PPOR can be in two names and the new house one name. The money will…[Read more]

Andrea,Perhaps Andy could do a binding financial agreement for you regarding this property (and any other matters). These can be done before, during, or after marriage and are binding under the Family Law Act (if done correctly).

I agree on using the offset – but has your PPOR loan been paid off yet?It might also be an ideal time to convert some of your non deductible loans into deductible.

Yes, until it is needed it should be kept in an offset account saving you non-deductible interest.I guess the main point is not to use offset funds for investments directly. (unless you have no non deductible debt)>

There are other ways……

Not necessarily LukeWhat if you had a $100,000 home loan paid down to $50,000 with $50,000 in the offset account. Net interest = $0Now you want to invest $50,000 in an investment. You have 2 choices:1) take $50,000 cash from the offset, or2) take $50,000 as borrowings from the redraw.Which would you choose?I would chose to borrow the money, ie…[Read more]

I should add that a broker would have to give back all of his upfront commission if you discharge the loan within 12 months.

BronYou must have been misinformed. If trusts could no longer borrow the economy would end,

The low income tax rebate has been around for years.Previously kids could get the rebate and earn up to $3,333 (eg trust income) without paying tax, but the recent budget changes mean this figure is now reduced to $416pa

There are now 2 main mortgage insurers, QBE and Genworth.Whether you can get any back and how much will depend on the bank and the insurer's policies. You may be able to get back up to 20% to 40% of the premium if the loan is discharged in the first year.It generally nothing will be paid:- unless requested- if the loan has been in default or…[Read more]

You can generally use a LOC for any purpose once it is established. But, check the loan agreements – you may find the bank can call in the loan at anytime.But interest on money borrowed for living would not be deductible. Why not live in rents instead and then borrow for investment costs.BTW, you can actually earn $16,000 and pay no tax because of…[Read more]

Personal Services Income.

Luke,You just have to overcome a few rules. From memory these relate to the number of customers you have – income of more than 80% from one source is not good.Do you have control over your work, or does an employer direct you?, do you have your own tools, set you own hours, take your own risks, have you own premises etc.If you can meet the rules…[Read more]