Discretionary Trusts are good for many reasons. One draw back is that they cannot distribute losses. But in your situation there may be only a small loss for a few years. After that the benefits will really start to pay off – especially if you sell.

Only approx 5 acres of your main residence is exempt from CGT. You are also required to move into your main residence as soon as practical after its purchase. So I think your parents will be up for CGT, but there may be ways to minimise it fi they lived in the shed, or maybe even intended to. Speak to a good accountant or three.

I don't know, but will have a guess.I think the 12 months would apply from the date of the contract for the land. So holding the land for 12 months or more should give you the discount.The CG would be the profit, ie sale price less costs such as building and land etc. Then this is discounted.

I guess a lot of people don't realise they could end up in the negative in the end when GCT is taken into account. Many never intend to sell and just wsh to live it up till death.

Scottybe wrote:
No Terry thats not what i mean at all, i realise this happens all the time. What i am asking, can someone refinance investment property and use the extra money for non investment lifestyle type purchases. E.G a pool for their ppor or a holiday to Greece etc? AND still claim all interest on tax? How would the coffers know what the…[Read more]

Capital gains tax has nothing to do with debt. it will be the same no matter what debt is on the property, but you will have to repay the loan eventually.

With No Docs you should not be stating any income at all. And what is the $6000 for?

I think you can claim negative gearing benefits on overseas property. Do a search on the ATO site and also look at http://www.bantacs.com.au as they have some excellent brochures available on various tax topics. They seem to be very good accountants too,

Borrowed money is not income so therefore you wouldn't have to pay tax on money borrowed to live on – but you would have to pay interest.

Maybe you could use a No Doc loan where serviceability is not tested?

Thanks DaveI checked with a Tassie solicitor today and was told you can do it, but will be hit with stamp duty twice if the nominee is a non related person or entity with a different ownership, eg a discretionary trust with several beneficiaries.

I believe that with a sub-division the titles must stay in the same names as the original title or there will be stamp duty payable.

St G have come back saying loans personally guaranteed will need to be declared too.

I agree it is the date of contract. So you could buy off the plan and resell on settlement 12 months later and still get the 50% CGT discount.

How could borrowing to buy a car work?It happens all the time. People borrow to purchase a car which is to be used for business purposes. It is not a loophole, but can be a legitimate expense if your business needs a car.

I agree with PP, but if you buy a car, the interest may be deductible (or part of it) if the car is used for business purposes.If you do claim  the interest, the ATO could possibly track you down by realising the interest you are claim has suddenly increased and therefore you must have borrowed more. So they could pick it up and then ask you what…[Read more]

You cannot claim the interest on money used for personal expenses. But you may be able to pay all expenses of your properties with your LOC, thus reducing your cash used leaving more for your lifestyle. If you do it properly you may be able to pay for any cashflow short fall with the LOC (if negative geared for example) OR you may even decide to…[Read more]

Yes, it is not easy. You will need to find someone willing to lend you the deposit, or the seller owner willing to lend you the deposit.I have received an email from a developer trying to offload apartments whereby he will pay stamp duty, and lend the deposit. You can email me if you want his details.

1) Yes,2) The developer could sub divide the land first and then have title, with the construction still to be completed.

thats a good idea.there is one available at http://www.lawcentral.com.au