Who suggested you sell your share and why?

I haven’t seen the draft legislation, but my understanding is no travel will be claimable from a certain date – 1 July possibly.

1. no
2. no

1. Assuming Part IVA is not used by the commissioner to deny the deduction, and you structure the legal documentation correctly it would be $150k plus $45k

2. Yes, but you should use a lawyer as many other legal issues.

3. are you licenced, ABN and insured?

This sort of will be hard to find unless you have a property to secure it against. banks may lend under commercial funding using the reno proeprty as security but it would generally be costly.

The only time you should use a portfolio loan is to access equity temporarily. Once it has been drawn down it would be best to convert the loan to a term loan interest only. Lower rate and less risk.

There is no minimum time.
See the legislation at http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.192.html

There are several things you could do
a) claim the 6 year rule on the current main residence when you move out. It could be totally cgt exempt.

b) rent the current one out and get the cost base reset to market value at this time and then later sell. Probably minimal to no CGT on this one

c) pay CGT on the existing and then treat the new one as…[Read more]

get some tax advice, you might have to make a family trust election to be able to carry forward the loss.

If it is being held on capital account then your accountant is correct. You cannot claim the main residence exemption under after it becomes the main residence.

I think it could be worse. The main residence exemption doesn’t apply where the property is held on revenue account even if you were living in it. Your intention at purchase was to buy build and sell and you took actions in this regard.

There is also no 50% cgt discount in these situations.

Also considered GST?

How you would do it is to borrow 80 or 90% of the new property and for the remaining costs you would set up a new loan against your main residence.

It’s one way of doing it but there are others. You could just sign the contract yourself, appoint them as your agent or they could act as your nominee.

You would want to restrict it to a specific property and amount.

Why do you want to give them a POA?

I am not sure what you are asking but if you mean out down a 10% deposit by borrowing against other property then lmi will apply in most cases.

The second option would likely involve paying LMI. No point in paying this if your serviceability will run out before your equity.
.

If serviceability later improves you can always borrow against these properties further and incur lmi then if need be.

Probably would be deductible if your intention was to rent it at end of Reno’s. See Steele’s case.

Very interesting Benny.

This is the first time that I had heard of this so I just made a spreadsheet to test it out and I got similar results. Very interesting.

My results were
$1 double 20 times becomes $1,048,576.

$1 doubles 20 times with 30% tax on the income component becomes $40,642

It all depends. Cgt may not apply and you may be taxed as income under some situations.

No need for a valuation unless it was your main residence.

All holding expenses could be claimed in some circumstances while you are holding and renovating even though you are not advertising for rent but only where you intend to rent it out after finishing.