Q. 1. I believe you could claim depreciation as the property is a rental. But I think there is some debate on whether you are entitled to claim it on your main residence when you are claiming the absence exemption. But you would only apply the 6 year rule if you sell, until then there is nothing to distinguish it from a normal rental. Not sure how…[Read more]

a. Stamp duty is a capital expense, so it could only be claimed against any CG when sold.b. Depends what you mean by "we". You as an individual cannot claim interest on loan the trustee takes out to purchase trust property. The trust would claim the interest. If the trust is a unit trust and you  borrow to buy the units you may be able to claim…[Read more]

You wouldn't pay CGT, she would as she is the one selling. You would just need to pay stamp duty and loan fees.There is no spousal deals between sisters I am afraid.

if its built in then i doubt it. That is really false and misleading. Someone could get into a situation where by they end up paying more tax because of this.

You have to think what it is for. its the rates for the full year, so if the place is only rented for part it makes sense that only part of the fee is deductible.

Hi Newdawn. I think you are referring to my reply to you???If so, then Loan 2 is a LOC which will be used only for investments. so interest should be deductible. It doesn't matter what the property securing this is used for, it matters what the borrowed money is used for. So changing your current home from PPOR to IP won't affect…[Read more]

The problem is the size of the things. very small which means low LVRs and not many lenders. This in turn leads to little or no capital growth. Another issue is the management restrictions. They may even try to restrict which agents you use to sell the place.I had a friend trying to sell one about 10 years ago – she wanted around $120,000. not…[Read more]

heathers – sounds better if you were to just join a bank!

I think she would have to apportion it. Same with the interest

Banker – this sounds like a good way for sammmeee to proceed in this case. Avoids the break fees but still allows sammmeee to get away from them for further borrowings.

sammmeeeI think the ATO doesn't really provide that sort of advice. You can ring up and see what they say, but if you wanted a firm answer you would need to lodge a request for a private ruling.

hi AmsainiIts still confusing to me.I think you are saying that you used part of loan A to pay for an investment and that loan B is personal. If this is the case I would pay off loan B first.You could refinance with another lender and split loan A but we are only talking about small amounts of interest so it may not be worth the hassle. Your…[Read more]

Sammmeee, check with your accountant as  this fee may be deductible if your purpose in refnancing is to set up for investing. It is still a large amount though, but it may be worth considering if you can do things properly and invest further.

You should probably talk to your accountant, but i would think option 2 to be the easiest – subject to you disclosing the purpose to the bank. make a diary note that you have told the banker this in case something happens in the future.You might need a simple loan agreement as evidence to the ATO – but it is unlikely they will be too fussy on…[Read more]

I agree that you should get an account – but you could try to estimate it yourself. Accountants will hopefully find you  more to claim and do it correctly.

If the title is in two names I wouldn't bother with the guarantee, but get the loan in both. you can then on lend the money to the wife or to her company. same rate as you are charged by the bank. Net result is the wife or her company can claim the interest.

Line of CreditAustralian Property Investor magazine – from any newsagent.

Thats what you get for going with a non-bank lender – trouble.You seem to be pretty much stuck, you also want to make sure that you don't dig yourself into a deeper hole with them.You will need to set up a separate loan on that property, preferably a LOC. Take money from this and use it for deposit for the IP. Borrow the rest from another…[Read more]

Banker, yes i agree in that case – but if just one on title there is no sense in adding another name to the loan as this will entail giving a guarantee and needlessly doubling risk

Sounds confusingIf you have funds in an offset account – ie a separate account, then there are no real consequences when taking money out as it was never paid into a loan. The interest will increase, but should be still deductible.For the other matter, the ATO don't care about  the explanation. They will look at the funds and where they went. If…[Read more]