There is nothing you need to do other than move in! (but kicking the tenants out before would help i guess)Future CGT will depend on the %  of time the place was rented and this is covered under s118-185 of the ITAA 97http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html

Be very careful and see legal advice. Ring up the tenant union of your state and pretend you are a person in her shoes. Tell them the owner is trying to kick you out and you dont' want to go etc and see what they advise. Then work out ways around this. Also try to be nice just to get her out. Once she is out you can tell her off.You may even be…[Read more]

So you have a  loan of $60,000 and just intend to let it capitalise and intend to pay all expenses from this account too? There is no other loan on the property.It should be ok generally I think, ATO have a ruling out that capitalised interest retains its characters. So if the interest is deductible the capitalised interest should also be…[Read more]

Yes.CG can be distributed to the lowest CGT tax payer too. eg you may have a relative with a capital loss and so the trustee could arrange to distribute to that person who may pay little or no CGT.If you are an indiviudal you are stuck with the gain yourself.

I think that should be ok. If you are going to be using the LOC to pay interest on your investment loan, or let it capitalise then you should seek professional advice – and you should look into this as it can save you thousands.

All trusts need to lodge tax returns.

With a discretionary trust no one person owns anything. No one has an interest in the property of the trust (until a trustee has made a resolution to distribute.

This is very important for asset protection reasons because if you are a beneficiary of a trust and go bankrupt, the assets of the trust aren’t available to your creditors. There are…[Read more]

You could use the LOC for improvements to the property and the interest should be deductible once the house is rented out. Jan raises an interesting point about repairs, but I would think that the repairs itself may not be claimable but any interest on loans taken out to do the repairs would be deductible once the property is rented out. This is…[Read more]

ATO are interested in what the money is borrowed for. eg If you took out a $500,000 loan to buy a property in 1980 and then paid it down to $400,000 1 day later and then withdrew $100,000 for a car – the interest on the money used to borrow the car won't be deductible but the interest associated with the house may be if it later becomes a…[Read more]

Sounds ok, as long as you do not withdraw from the LOC for personal expenses. withdawing(Borrowing really) to pay expenses for this property should be ok, but check with your accountant.

It depends how you use it.If you were to deposit wage in and take it out every week, then you could quickly end up with a large loan and no interest on it being deductible.

You won't get around stamp duty I am afraid.Also there would be little asset protection, especially in the early years.

How can you buy from yourself?You can sell something you own to yourself as trustee though. Then you will have problems with losses trapped in the trust though.

There are generally two types of trusts:Fixed and non fixed. a unit trust is a fixed one in that the trust must distibute income in fixed proportions to units held.Discretionary are non fixed. The trustee has discretion on who to distribute to each year (from the range of beneficiaries).A hybrid is part fixed and part discretionary.There are also…[Read more]

broadly:Costs are deducted from gains first. Then the 50% discount is applied. The gain is then added to your other personal income.

1) yes. You can only claim for what you own2). There is no right answer on what you should do. Do the sums on various scenarios and see which one works best for you.3). Yes it can be. You will need a lawyer or conveyancer to do the transfer of title and pay stamp duty etc. You will also need to redo all the loans with the property as the ownership…[Read more]

the stamp duty act for WA should tell you.

sounds like you are still confused!You can't really withdraw equity – you can only use equity to borrow.

What about talking to a lawyer about partitioning the land. You can buy 50% now and enter into a deed of partition with your mum. You then later divide the land and can do so without stamp duty if the portions transferred as the same as the partition agreement.

Otherwise you may find you pay stamp duty going in and then stamp duty on subdivision…[Read more]

Hi MI don't know much about the tax aspects and less about GST, but a trustee company can register for GST if it is conducting a business. But this is not recommended due to the risks associated with business – ie don't have your property owned in the same trust as a business. A GST is collected it would need to be paid to the ATO with BAS…[Read more]