You can still class a place as your main residence, even if absent. s118-145 ITAAhttp://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.htmlso depending on your circumstances you could class the old one as your main residence and sell it and pay no CGT. But if you did this your new one wouldn't be exempt.See also s118-185 ITAA for…[Read more]

I don't pay much income tax at the moment. Pretty soon I will be returning to work as an employee, then I will have to do some rethinking.

GST should be included in the price. If he doesn't pay the ATO that is up to him.

I am watching TV while reading this, so cannot concentrate enough to digest it all.But basically I couple can only have one main residence between them. Couple includes married and defacto.You can claim the main residence exemption from the date you move out of your main residence until it was sold, for up to 6 yrs, as long as you do not claim any…[Read more]

Ask if he thinks you should use a trust, and if so which type of trust.Then ask for his reasons why you should or shouldn't use one.

Yes, but it may be even worse than you think. CGT would probably apply as well asWhat has he done with the excess money borrowed? if he has used it for personal expenses then the interest on this portion borrowed will not be deductible.Furthermore, if he has used trust assets for personal expenses then he may have breached his various duties as…[Read more]

I don't contribute to super at all.

Propertyboy, sounds like a bot of a mess you have got yourself in. You were claiming in another post that your parents were wanting to claim this as an investment property. Are you sure your name is on title? and is it you only?If they want proof of you making a payment (and I am not sure why they would want this), then you will need to show funds…[Read more]

GOM, I don't understand??? I am only paying less than $200 per month from super. I am not salary sacrificing

I have my insurance done thru the super so I don't have to pay out of pocket.

Yep, i run mine thru my super.

A few years ago I mentioned to a friend that I had life and trauma insurances, his reply was why waste your money on that. Now he has a few months to live with sudden discovery of advanced cancer which has spread to his organs. My insurance cost me less than $200 per month for both life and trauma.

propertyboy wrote:
If interest can't be claimed when I am living in it what about when I decide to rent it out for those 6 years?Can I claim the interest against the rent? With the amount I can reduce from my taxable income being (Interest paid to parents as per loan agreement – rent received by tenants)?Or are my parents the ones who can claim…[Read more]

propertyboy wrote:
Because they are paying 1k a month in interest to borrow the money and only receiving 600 from me who they have loaned the money to. Can't that be classified as an investment running at a loss, hence its a $400 loss which can be offset against their taxable income?

I don't think so. What does your accountant say?They are not…[Read more]

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And how can they claim the interest?

How can your parent rent you your own property?

I think the original post is about setting up a trust – I assumed a discretionary trust. If it is a SMSF trust then it is even more complicated and more important to get advice.The deed is only one aspect of the trust. It is how it is set up that is important. eg.there are cases where someone bought a property as trustee for a trust and then they…[Read more]

Wonder how their reports have performed in the past.

Injecting cash means you can keep the properties stand along. Using as security means cross collateralising. There can be differences in this regard.Borrowing capacity is not helped by the trust – actually it may even be hindered as your income will drop, but the lenders usually just go on the rent received by the trust and your wages so it is…[Read more]