The other person is basically renting your 50% of the house. You should be getting rent for your share and can offset the expenses for your share.So it should be deductible – check with your accountant. 

Excellent.Thanks Eddie

Look at a discretionary trust

I think it is generally better never to pay off any loan – keep the money in the offset and this will offer the same interest savings and greater tax flexibility.

Luke D wrote:
What is the law when it comes to negative gearing and trusts? Can someone give a definitive answer because some say you can and others say you can't. Does that mean accountants like chan and naylor with their property investors trust are technically not right or is it the accountants who tell you it's not allowed just not creative…[Read more]

Make sure you ask if they charge before the first meeting. One of my friends went out and 'interviewed' a few accountants and received a few bills in the mail from it

eddiec wrote:

Terryw wrote:
If may be difficult to borrow the money in your own name unless you use your own property as security. It is difficult to borrow in your name if the company is the owner as this will be 3rd party lending.But, assuming you can, and you charge your trust more than you are paying, then you will be making a profit and…[Read more]

xya wrote:
I'm about to call some valuers, but I'm just confused whether valuers also provide depreciation schedule? I was told that I would need to get a quantity surveyor to do that. Is that right?In that case, does the valuer only provide a valuation for the property, e.g. $400k for the unit and nothing else?

Nope, valuers don't provide…[Read more]

Every withdrawal from a loan is considered new borrowings – so the deductibility of the interest will depend on what the funds borrowed are used for. If you borrow to fund your new property which you will live in, then the interest will not be deductible.You need to think outside the square. What can you borrow money for that will be deductible?…[Read more]

also try www,bantacs.com.au

Hi1. Probably a discretionary trust for investments due to the tax benefits and asset protection. But, there are lots of tax consequences if you are a non resident for tax purposes – so get some advice.2. Yes. Losses cannot be used to offset non trust income.3. Not sure, you maybe able to get 80% depending on your situation.4. You will need to do…[Read more]

Unless you used the for hatred and loathing clause (divorce) I think you are up for CGT – but talk to your accountant.

Yes, please look at a SMSF – you could end up in a much better situation – nil tax for starters plus better asset protection.

hiDo you mean the IO / PI debate???I would never recommend a PI loan – except in one situation and this is if you are a spender and will blow money easily. Otherwise the IO + offset is the way to go for tax reasons mainly. You can always pay extra into the loan if you wanted to too.

A contract for the sale of land is not enforceable unless it is exchanged. ie  you must have a contract with their signature on it. But I am not sure if you can enforce it using a faxed copy.Best to ask your solicitor.

I agree.You can take money out of a loan at any time – if the product allows it – but whether you can deduct the interest on this portion will depend on what it is used for. I would suggest you not pay extra off the loan but keep the money in the offset as it will save the same interest but with less tax hassles.

disregarding the personal loan for a moment, these days you will need at least 3 to 5% deposit as genuine savings in addition to the FHOG. Some lenders also know back people whose net asset position is negative. So, i don't like your chances I am afraid.

It depends.If you cannot pay the mortgage the lender will reposses the property and sell it. If there is a short fall they will then come after you. If you cannot or will not pay they can seek a court order to take your property and sell it – including real property.So eventually they could get at your other property if there is a short fall.

Depends on the bank.Most banks just have the offset applied to the interest, so the balance stays the same and the interest varies with the amount in the offset each month.Other banks, notably St George, do things differently and take any saving off the principle.

The trust may end up making a profit and, hence, tax would be payable.  There may also be land tax and CGT later on if sold.If they bought in their own name then they would have the land tax and CGT exemption.On the other hand if they are paying rent they may be able to get rental assistance if on the pension. You would also need to be careful…[Read more]