Yep. sounds like a good strategy. Should be no CGT and no agents fees etc and your family gets to keep the property while maximising tax deductions and reducing the loan on your new property which will not be deductible..why a 50/50 split? If you only sell half, then you may save stamp duty, but you will only release as half as much you possibly…[Read more]

Ice,some things to consider.If you are director or an employee of a company and live in a house owned by the company there may be FBT issues.If you purchase in a discretionary trust you may find there is a taxable loss. This loss cannot be offset against your personal income. So if your trust has no other income, it may be to roll loses forward…[Read more]

Here is something I just found which I saved ages ago: Compound Interest on a Line of Credit Facility Monday 27 November, 2006 The Tax Office has accepted that a deduction under s.8-1 of the ITAA97 might be allowed to a borrower for compound interest incurred on funds borrowed under a line of credit facility in order to acquire an…[Read more]

Don't go unconditional without finance or you could get into big trouble. Just ask for an extension.

Hi CarlinI don't know anything about super. I know there are concessions, but to sell the IP you would have to pay CGT (which I think can be offset by making a deductible contribution into super), but then you say you have to pay 15% tax when you put the money into super.If you had a trust you could distribute to yourself and still do all the…[Read more]

Your friend can lodge a caveat now, or as soon as you settle. And you should certainly do a will too. And maybe have some sort of written agreement drawn up by a lawyer too which will specify how much she should get if you break up and how this can be calculated.

If your loan is fully approved and you have signed all documents and sent them back, then your bank should be ready to settle within a few days – although they usually want to allow around 10 days.If your solicitor is back, then there should be no problem as long as the other party agrees.

gmh454 wrote:
The elephant in the room on this is the unfunded Cap gain tax liability.Eg: Investor bought prop for 250K five years ago. Now worth 500k. Has drawn down additional debt to cover shortfall, and living expenses up to 400K.At this point the Cap gain liab yet to be paid is up to $ 62,5000 depending on marginal tax rates. Have seen a…[Read more]

There can be delays over Christmas, but pushing things out to Feb is a bit much. Maybe it is your solicitor that is going on holidays until this period? I would just instruct the solicitor (your their boss!) to ask the other party to settle when you want. Ask them to do it in writing. The vendor's bank should be able to settle in a few days of…[Read more]

If she has contributed to the ownership of the property then she has an equitable interest and can lodge a caveat. This notifies anyone dealing with the property her interest and it can't be sold or mortgages with the caveat in place.If she is just lending you money, then she can't legally put a caveat – (unless maybe she can lodge for family law…[Read more]

Jasonask your accountant. You have to be careful if you live with your wife!

HiYou can't rent your own property, but you could rent one owned by a company or a trust that you control or a husband could rent off the wife and vice versa – or another relative. Many many things to consider though.

never

It depends.If you have non-deductible debt, then I would concentrate on paying that off first before paying down an investment loan – otherwise you will be kissing money goodbye (ie paying more tax).If you have no non-deductible debt, it may still be wise to get IO as you can then afford more investments. You can still use a 100% offset account to…[Read more]

daniellee wrote:
HiI was actually looking for a topic like this. I read Michael Yardney's book about living off the equity. Was wondering:1 – Are you about to use the equity for both invesment and private use, and still be able to differentiate the purpose of the loan for tax deduction purpose?2 – What do you offer as security? PPOR or IP? Would…[Read more]

Yes, you can rent out your home and claim the deductions as you can on a normal investment property and, under s145-118 of the ITAA, still claim a CGT exemption for that house.

It depends on how much tax you can save.If you add up all the interest and depreciation etc and then work out what the loss will be, you then can work out how much tax you would be saving. These days with low interest rates it will be a lot less viable, but if your loan is still high then you may have a large loss and large tax savings.You then…[Read more]

WJBut as the investment LOC goes up, the home loan will be going down at the same or faster rate. You are just structuring it to reduce non-deductible debt faster – of course not for tax purposes, but for cashflow reasons.

alani wrote:
I set up a HDT a while back and be holding of buying anything under it. I was wondering though if I could change the name of the company that controls/owns the trust?? Also, should I bother buying anything at all with it? Previous posts suggest not, Yes Im confused as my accountant also suggests not to bother with them….

Yes you…[Read more]

ibis69 wrote:
I meant that,,I move out of our PPR ,,rent that out for say$300 a week rent another premises within our margin of $ 300-$350,,claim back interest,,I have only one home loan  and in effect can I also claim depreciation on the building up to 40 years and on the single items,,,,plant etc,,,,,,,,say my depreciation is $7000 because it…[Read more]