hi AdamYes there is a form to fill in. I can't remember the name now, but your accountant can usually help you submit it. Tax installment variation form maybe???

Capital works is the building and anything or most things attached to it. You can't claim the cost of the house construction for example. Depreciation is the gradual loss in value of an item and the ATO allows you to claim a portion of the cost of an item to compensate for this. eg. Building works can be claimed at 2.5% per year for 40…[Read more]

I believe it may be possible. But remember you cannot claim capital works upfront, only depreciate it.

You can claim expenses your PPOR if it is rented.

You have to report all income to the ATO, including rents.But you may be able to class either A or B as your main residence, but not both at the same time. Because you lived in A before buying B you may even be able to class A as your main residence for this period, and B or A for the next period – up to 6 years in total. You cannot claim both for…[Read more]

If they are people I believe so, not if companies.

tax implications of borrowing the deposit? it would be treat as any other loan – if used for investments the interest should be deductible.

I think stamp duty is payable on the value of the part transferred.Since ownership will change you will need a whole new loan.you will need a valuer to value the property for stamp duty purposes and the bank will also send their own valuer for their valuation. You may be able to save a little by using the same valuer as the bank.Factor in legals…[Read more]

If you are not going to move back in then there may not be tax issues.IO loans are the way to go.I am all for trusts too.

Yes trusts can access the 50% discount – actually it is the person being distributed to that does.

Were the special conditions part of the contract? If so and they signed the front page then I would have thought you had a binding contract.

Did u live in A? If so you could probably claim this as your main residence. You could also claim B too, but not both for the same period. either one if sold within 6 years after moving out could be exempt from CGT.I beleive that if you don't rent the place you can be absent indefinitely and not have to pay CGT. I suggest you look at the Income…[Read more]

You need to increase your cashflow somehow. You can do this by increasing the income and/or decreasing expenses.Some ways to increase income are:- get a higher paying job,- get an extra job- increase rent- sell an option on your property- consider selling via an installment contract.Some extra ways to decrease expenses are:- change all loans to…[Read more]

Do the sums and then reassess

You should definitely try to set up a separate loan for the equity . This is especially so if there is a chance you will move back into the house again as the main loan will then be non deductible. So you don't want to mix the 2.Also consider the tax implications of your cash. It may be better to pay the cash into the loan and then reborrow…[Read more]

Big issues with loans, but also with tax as well. I would steer clear.

That's a lot of improvement for such a small unit. If I was the lender I would be asking what exactly are you going to do.The private lender won't be cheap either. Rates maybe around 10% (+) and application fees of 2-3%, legals, valuations etc.

If you are living in the new property then the interest wouldn't be deductible. Only if it is rented out.

Trusts won't help borrowing capacity, so whether in your own name or a trust borrowing will be the same.They may cost a bit more initially, but hopefully will save you tax in the long run – assuming you will make a profit. You have to weigh up the advantages and disadvantages.Carrying forward losses means bring the loss forward to the next…[Read more]

yes, you may be able to do that. you can be absent from your main residence for up to 6 years and rent it and it can still be CGT exempt.The only problem in your situation is that if the loan is very low you may have to pay tax on the rent and you also will have to pay the interest on the new one. So it would only help with the CGT maybe.