could be very dangerous for you. What if the work hasn't been done to the correct standards and the council ask you to demolish it.

board is exempt from tax, but what you have described isn't really board – this is just receiving money to pay for costs such as food and electricity usage.Also there are CGT implications. If you rent out part of your main residence then you will have to pay CGT on this portion when you sell.

You can only have one main residence at any one time. When you sub-divide you will have two properties, so from the date of sub division only one can be your main residence. Vacant land can't be a residence. I think the new land once sub divided will have a cost base of the value at the date of sub-division – but i may be wrong.

These days lending to a company complicates things and these loans are often pushed to the commercial sections. There is no real reason why the bank has to know the company is acting as the trustee, unless the banks ask.Having a side agreement separate to the discretionary trust may be ok if things go well, but the trustee of the discretionary…[Read more]

I am not sure about this – I am not an accountantThe trustee is the legal owner of the business so it would have to transfer portions of the business to the beneficiaries. I guess it could be done. There may be CGT implications though.

largely, depends on the trustee. These days it is getting harder to get loans for companies – often goes through the business section.

I think you accountant is wrong – or you misinterpreted what you where told.Firstly trusts don't have directors, but trustees. If the trustee is a company, then the company will have a director. Discretionary trusts are the best method of asset protection as no beneficiaries have any interest in the trust. This means if a beneficiary goes bankrupt…[Read more]

Not sure exactly what you mean by equity – are you asking if the people who loaned money take a percentage of the business instead of getting their money back? If so, wouldn't it be better if the trust were to use the losses to offset the gains and repay the loans?

If buying jointly, then too risky to use someone you don't know – what if they stop paying the loan = you will be left with it.A better way may be a lease option type deal where they own it and you pay rent, with part of the rent going towards the price you will pay for the property.

1. Only two ways really – earn more – owe less2. no. in fact lenders may be reluctant to lend to a trading entity because of the added risk.

I think your parents should see a lawyer. especially for the mortgage. They must be registered at the land titles office .

Sounds like you should see a broker.

For asset protection the best trust is a discretionary trust.But you will need some proper advice – eg. transferring your home into a trust will result in : – less asset protection – Stamp duty – Loss of the main residence CGT exemption – potential tax issues if you live in it – potential legal issues if you live in it – possibly, or proba…[Read more]

Hi HongYour mum should looking into setting up a discretionary trust in her will, a testamentary trust. There are some pretty good tax reasons to do so – children can receive income and are taxed on the full adult tax thresholds.But you should also look at owning at least one property in your own names so that you can get the main residence CGT…[Read more]

Yes you could do that. It is just substituting the security of the loan.

Hello Karate I would just start by producing a spreadsheet and listing all of your expenses and incomes. Then you could have a column for estimated expeses and one for actual. Try to make everything come in under expected and just keep monitoring it. Just by monitoring it it will have an affect on your – you will be thinking do I really need this…[Read more]

Yes it is possible. If it is your company then you need to be careful. There are some legal and tax ramifications.The company is not you even if you are the sole director and shareholder. The director has a fiduciary duty to act in the best interests of the company so you would probably need to charge yourself market rent for example. Same from a…[Read more]

Thanks Mr5o1Mav, think about how the GST applies on a book for example. It is not paid on the profit, but on the sales price. If the book is sold for $20 then this is the price with GST . The GST component is = $1.82 (divide by 11).Now assume the bookshop buys the buy for $10. $0.91 is GST. The buyer pays this to the seller as part of the price…[Read more]

They don't like third parties cause it can get messy if they have to reposses the property.All persons giving the guarantee or going on the loan will have to pass the serviceability assessment of the lenders too.

Banks generally allow spouses on the same loan even when they are not on title. But non-spouses they don't like. (Spouse includes defacto).You want to borrow money to finish off a project – seems to be a good reason to me.