An option holder has the right to lodge a caveat on a property.

Why not look at trusts instead?Companies are inflexible and do not get the CGT 50% discount that would be available via trusts. They also pay a flat 30% worth of tax when most individuals may be paying much less than this.

hi TLPI would still caution you regarding this. It could be very costly if the broker is incorrect. I would advise you to get some written advice so if you are audited and disallowed you can point out that you relied on the advice and the penalties will be lower. You could also go for a private ruling.The problem is that the funds are not really…[Read more]

You should definitely see a lawyer as there are many issues and large monies involved. If you disregard the stamp duty issue or CGT for example it could cost you many thousands of $$$.What I mean is any transfer will be assessed at market rates not transfer amounts. So you can sell to your son for $1, but you may pay stamp duty and CGT based on…[Read more]

Why are you taking tax advice from a broker? In terms of loans, yes it is possible, but in terms of tax deductibility it may or may not destroy your ability to claim the interest on $166,000. Is your broker saying you can  claim the interest? Are they licenced or qualified to provide this advice? What you are doing may be ok if you never use the…[Read more]

What about you though?

OMG, 10k, I didn't even notice.

You could probably sue him. You may win, but does he have any money or assets which you could seize to satisfy your judgment? If he is a miner he may be on good money, so you could get court orders to guarnish his wages over a certain amount (abt $800pw), but he may just stop working, or make sure he earns less than this so you get nothing.

Many issues.You can only claim rent at market rates, transfers are at market rates as are CGT and stamp duty calculations.You could also buy it now in your name with you are his/her trustee. Later you could transfer it for nominal stamp duty, $20 maybe, and no CGT. This may, may not, cause problems with the loan though.Also family law issues -…[Read more]

I beleive you can own an investment property and still get the FHOG in most states.She may also not be considered to have owned the property if it is held by the executor of the estate (even if that is her) and then sold.

Susannah Bowden wrote:
Thanks for that. Now an overly simplistic query in regards to trusts – I have set up "X Investments Pty Ltd" as the Corporate Trustee for "ABC Family Trust" in SA. Here are the questions: 1. Which name does the bank account get opened in/which name doess the borrowing? 2. Which name goes on the purchase contract/title…[Read more]

I haven't heard these talked about much in Australia. But if a beneficiary is receiving income from a trust it will be taxable in their hands. If a trustee does not make a distribution the trust income is taxed at the highest rate usually.Being blind just means the beneficiaries are not named and therefore they can't have any rights to inspect the…[Read more]

I would not use the offset account as that is not borrowings and the interest deduction may be denied. What you would be doing is borrowing to put into an offset, which does not earn interest. Then the money is savings. Once you take it out of the offset account the interest on the loan will go up, but you probably won't be able to claim this portion.

This sorts of things happen all the time. I attended a settlement once and it didn't happen because one of the bank cheques didn't have 2 signatures on it. So the other party refused to settle. Had to go back to the bank and get the second signature and do it the next day.

get a relative involved, through a trustee maybe, and then you build for them.

I wouldn't do it, there is no point just added risk. I would also try to avoid paying the loan on that property too – which might be a bit hard if your wife isn't working.Otherwise if you pay the loan then it could be argued that the wife is trustee for you or at least half of it.

I think there are 2 issues here PJ.The first is the capital loss. This will be trapped in the company and your company may not have any other capital gains to offset the loss which will mean it ends up wasted. You may be able to use income to offset the loss too – but income of the company not your income. (BTW did your company sell the business…[Read more]

Try that one with Seinfeld in the ads. Heard they were giving away free holidays.

excellent

PJ – sorry I don’t understand that. How would buying an IP help with cashflow? Sure it may go up in value, but why are you linking the IP and the debt? They are totally separate issues I think.