I agree with that JPCCM.In my eg of the person tripping and suing the trustee, this would be a trust debt (assuming the trustee lost).

Hi JPCCMI must disagree with you.The trustee is the legal owner of the property of the trust and is personally liable for debts incurred in performing their role as trustee.If someone is sued as trustee their personal assets are at risk. This could be someone tripping on carpet in a rental property. Someone who had notified the owner several times…[Read more]

And, just move back into the property 5 years 11 months after you moved out and then later move out and you will get the 6 years again.

I think the cost base would be the valuation at the date the 6 years ends.if you sell before 6 years there would probably be no CGT.

6 years.(the 6 on my keyboard don't always work!! – maybe like your 'n'?)

HiWell sort of.BJ, the family home may not be 100% safe for a number of reasons. It could be found that the house is really a joint asset with the wife holding he husband's share as trustee for the husband. You would have to look at who paid for the house – initial depost, was it all the wife's? Ongoing payments, was it all the wifes? Non…[Read more]

Hi JasonAre you saying you lived in the unit first and then rented it out?If so you may be able to avoid CGT totally and still rent it out for up to  years as long as you are not claiming the CGT main residence exemption on any other property.Otherwise you will be up for CGT from the date you rent it out. For CGT purposes the market value at the…[Read more]

Sorry, I got the section wrong.It is s197 of the Corporations Acthttp://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s197.html

It is a difficult concept to grasp at first.With a discretionary trust no beneficiary has any interest in the trust property. So if a beneficiary is sued the trust property is not able to be touched.Under the Bankruptcy Act property held as trustee is also not considered the property of the individual so this is not able to be touched if the…[Read more]

$69,000?? wow. And then you give away part of your commission???? wow wow!

IanNot recognised for loans maybe, but for other matters they would be. Such as operating accounts etc.The trouble with loans is if the attorney signs certain documents then there are privacy issues such as releasing information of the donor which will be seen by the attorney and the attorney making declarations for the donor which they don't know…[Read more]

Excuses don't matter. But may lessen any penalties.If you get your tax wrong you will have to pay any tax owning plus a penalty. Penalty will vary depending on how serious it is and your actions.In this case you interest on $45,000 is approx $3,000 and it you are paying around 30% tax the tax saved would be about $900.

Technically I don't think the interest would be deductible.You have borrowed money and invested them into a savings account. This is not a commercial transaction and you couldn't justify the deduction of interest here.Once in the savings account the funds are savings, no longer borrowed.You could trace the funds to the savings account and then to…[Read more]

Did the savings account have an other funds in it before the borrowed money was transferred into it?

NIMBY wrote:
Just one quick tip – minimise non-deductible debt and maximise deductible debt.. You seem to own more of your investment property than the PPOR – Whatever you work out I would move some of the debt from PPOR to IP at least getting the IP up to 80% debt.

Not as simple as that Nimby. You can move the debt, but the tax deductiblity…[Read more]

Not true. Your attorney can sign any documents which you can. HOWEVER – many banks will not accept their loan documents signed under a power of attorney. I went through this recently with CBA and they wouldn't allow it. I have also done it many times with ANZ without problems – but this was many years ago now.

Thats how I understood it.And the answer is that you will probably not find a lender willing to do this. I think St George used to, but not any more as far as I know.

You mean offering a second mortgage on your existing property?That is generally not done, although would be possible.You are better off just taking a separate loan with the existing lender and then use the money as deposit on the new property with the remaining from a first mortgage on a new property.As for tax it won't work out any difference.…[Read more]

And did you take the $45k directly from the home loan to the OSR, or did you move the money to a savings/cheque account first?

BTW, was your caveat lodged before hers? if so you may have some priority.