Yep, that sounds right.Not sure you fully understand depreciation though.

You shouldn't use your money in the offset as the interest on your home loan will increase.If you put it in your home loan and then redraw this is better but still not ideal as each subsequent deposit into the home loan will be decreasing this investment loan (the money redrawn).The best solution is to pay down your home loan and then to ask your…[Read more]

Let me rejig it for more lossesegYour trust buys a property for $100,000Rent is $5,000 paCosts are $8,000 pa (interest, rates etc)Depreciation = $2,000 pa Taxable income is ($5,000) (loss). But depreciation is a non cash deduction so the cashflow is only ($3,000). So you will need to inject $3,000 to keep the trust going. Year 2Rent is $6,000…[Read more]

Hi Johneg may help.Your trust buys a property for $100,000Rent is $5,000 paCosts are $8,000 pa (interest, rates etc)Depreciation = $2,000 pa Taxable income is ($5,000) (loss).But depreciation is a non cash deduction so the cashflow is only ($3,000). So you will need to inject $3,000 to keep the trust going.Year 2You found an extra bedroom you…[Read more]

Sorry, spelling mistake.The owner of the building claims the deductions. ie owner of the property. Trust if purchased in a trust.

Hi JohnIf your trust is making a loss you will need to inject funds into it somehow – either a gift of loan. Deductions can always be claimed by the owner of the builder and this will be used to offset other income. If no other income then the overall loss may be bigger – which can then be used in the future.Keeping LVR at 80% will avoid LMI (with…[Read more]

Yes its that simple. You will need to prove your personal income though – ie person behind the company.

A trust is a relationship where A owns something for B.A is the legal owner but B is the real owner.Just think of a bank account for kids. Kids cannot operate bank accounts so the parent opens an account as trustee for the kid. The parent's name is on the account but the money belongs to the kid. The income from the account belongs to the kid and…[Read more]

You would only want to pay down an investment loan if you had no non-deductible debt at all. Even then I personally wouldn't do it, but keep the loan IO with the offset.Also i doesn't really matter if you pay down the first one and have a higher second loan – what you should be looking at is the overall LVR. From a borrowing POV it may be better…[Read more]

Fredanyone can pay GST. if you were to purchase a new house GST would be included in the price – same as if you were to buy a car or TV etc. Personal or company don't matter.

You can only have 1 property as your main residence for the CGT exemption. ie one property at any one time (per couple) – except for a 6 month overlap when selling.And you can't claim a property as an investment unless it is rented out – or you are trying to rent it out.

johnmina wrote:
Hi Thanks for that Terry that clears some things up. I'm just waiting for my accountant to come back from holiday and I'll be speaking to him in a lot more detail, till then I'm trying to learn as much as possible. I have a few questions about the equity of a property and if anyone can help it would be greatly appreciated. 1 In…[Read more]

hiAre you asking if you should move into your holiday home and sell the one you are living in?

I should add, it you borrow against Perth the interest on the extra funds borrowed will only be deductible if they are used for an investment purpose. Same with LMI. What you are proposing above seems like you want to borrow to buy a place to live in so the interest and LMI wouldn't be deductible.Deductibility depends on ownership and you can't…[Read more]

It doesn't matter where you borrow the money or what the security is but what the money is used for determines deductibility.

hi John80 Years is a long time and it will probably be your grandkids getting the property then. When the trust must vest or wind up the trustee distributes the trust assets to the beneficiaries. At present some states would be stamp duty free, not sure about CGT it would probably be payable though. Remember taxes/stamp duties etc are likely to…[Read more]

Make sure you don't use your cash to invest just keep paying into your home loan and borrow the equity to invest as Daniel mentions. You can also set up another loan to pay the investment expenses and interest on your investments to speed up the paying off of your home loan.

yeah, makes sense.Just be sure you organise a special interest in advance loan – it is not just a matter of dumping in 12 months of repayments to an existing loan.

You would need a tax agent/accountant to get taxation advice or maybe a tax lawyer.see bantacs.com.au they can arrange a private ruling from the ATO for you for about $600

You would need to transfer (sell) to the trust = stamp duty, legals, loan fees etc.