Just because you have signed and/or nominee doesn't mean you can nominate anyone. Its not that easy. You will be charged stamp duty as will the girlgfriend, unless the OSR has proof you had an agreement prior to signing the original contract.I would suggest you get the highest loan possible for the studio and make it interest only with a 100%…[Read more]

Hi KentenI don't think you can transfer into your name without stamp duty – unless you divorce maybe!As for the loan, the ATO will look at what the funds were used for. Was the whole $196k attributable to the investment portion? Probably not, maybe half or a bit more if you can say you borrowed funds to do the sub-division and some reno costs.

Sushiboy, yes you probably can – if it was your intention to build an investment property when you bought the land. But interest should be claimed against the income not the capital gains, so you may have to go back and amend your tax returns for 3 years – and this may save you more tax.

Even if you are living in the places as your main residences the ATO can say you are carrying on a business and still hit you with tax on the profit. Depends on if they were to know about it somehow. So maybe do one in your name and then one in your spouses name and keep swapping – it may delay detection. And just factor this tax in just in…[Read more]

Thats a good summary i think!

Hi Bootlace.Thanks for the follow up, I checked the link to the QLD police – I have never heard of any of the companies listed there before.

You will need to check out the tax issues such as:- are you a resident for tax purposes- implications of a non resident trustee of a trust.The ATO site has some basic info,I don't think there are any other specific things relating to you being overseas.

i personally wouldn't even consider them. Low capital growth, hard to sell and hard to finance.

Setting up a company costs about $400 to $500 these days and the yearly fees are the ASIC fee of $250 (approx) and tax return. But the tax return will be nil as the trustee company wont be trading. So your accountant won't charge too much extra for this.Also, companies add advantages from a boorrowing point of view. Say you own a property and have…[Read more]

Discretionary trusts are excellent for owning appreciating assets such as property. Draw backs are that any losses in the trust cannot be used to offset your own personal income. This is less of a problem these days with low rates. Another problem is you may end up paying more land tax. But the good points outway the bad, and these include:- Asset…[Read more]

I am seeing a few clients having problems selling properties which are cross securitised. Actually they can sell them, but the bank cannot or won't release the titles as the remaining security has dropped in value and in some cases the remaining loan is more than the value of the remaining property.If only they hadn't crossed securities.

carlin wrote:
Still not clear Terry. The property is held in the wife's name. Does that mean that (for tax purposes) it's owned fully by her and therefore CGT (if it's sold) is based on her tax rate?

Sorry, I read "married couple owns a property". I agree with Dan. owner = title holder gets the gain.Carlin. maybe you were reading something…[Read more]

Your fin planner probably will advise against property.These days rents are high and interest low so even a property in a good area is close to cashflow positive or neutral. I am not keen on buying cheaper property in outer areas just cause the rent is high. You don't get rich on the rents, but on the capital growth.I would look at somewhere in a…[Read more]

Whatever you do, don't pay off that loan. you will end up paying more tax on the rental income and will have a higher loan on your new property which will mean more interest which you cannot deduct.I would change the loan to interest only asap.

CG is calculated and then divided up based on ownership, 50/50 or whatever. You pay your share and the wife pays her share. Tax may be different depending on your individual incomes.

Getting into joint loans with family members, or anyone else, may seem to be a good idea at the time, but often a few years later you realise you are trapped, unable to borrow anymore as lenders consider you responsible for the while debts, not just your share. worse, they will only take into account your share of the rent. So in addition to all…[Read more]

For starters ditch the conveyancers. You have a legal problem and they can only work on the transfer of land. You would be able to back out if there is a sunset clause in the original contract – which there probably is. Is there anything in the original contract about the rental income? Were you paying rent? and did the licence agreement allow you…[Read more]

complex. you would need to see a specialist tax advisor.So you are not a resident for tax purposes?I would think you would just have to pay tax on any profit at the rate applicable to non-residents – starting at 30%. You can do anything you like with the income, eg put it in your wife's account. Why not buy in her name? You could guarantee the…[Read more]

I am in Thailand atm and don't have my law books with me, but from memory…its a painful process to change the trustee. Firstly, you will need to change the name on the title deeds, Then you will have to  redo the whole loan again as the borrower will change, though the guarantors may be the same.lots of running around. Stamp duty should only be…[Read more]

Complicated I am afraid. It may depend on which country you are from as there are double tax agreements between Australia and various countries so you may pay not tax here, but overseas instead. If you were treated so that your overseas income is disregarded then, possibly it would be calculated like this.- if held more than 12 months, you can…[Read more]