CataThings changed in Dec last year. A court order is no longer needed for CGT relief on the transfer of assets between spouses (including defactos) on the breakdown of their relationship.See the March "Tax Agent" magazine from the ATO:http://www.ato.gov.au/content/downloads/js7009_Taxagent_news_w.pdf

HDTs are looking very unstable at the moment, some deeds will definitely fail the interest deductibility aspect with the ATO. So best to avoid at the moment. Anyway, as Richard alluded to, they are only good when a income loss will be incurred,

try Mike at http://www.guardianpartners.com.au

HiI am not sure how those trusts could last more than 80 years. Maybe a resettlement like Cata suggested.We could be causing problems for our decendants. Remember years ago people used to issue life tenancies to the surviving spouse. Usually the man owned the property and the wife got a life tenancy. But sometimes, or often, the wife needed to…[Read more]

Legally there the trustee purchases the asset in their name for the trust. There is no real requirement to list the trust. People do this for added protection in case there is a dispute down the track. The trustee's ownership as trustee can be established other ways including lodging a caveat on behalf of the trust just after settlement and…[Read more]

Yes, it is true to a certain extent at least. The family assets can be transfered between spouses without CGT, but I believe that teh CGT consequences remain – it is as if the receiving spouse had the asset the whole time.So those contemplating divorce, or a separation should be careful about which assets they receive. One getting the former main…[Read more]

It will take some getting used to! eg. How do you find unread posts?

Hi JoelAI believe you would probably qualify for the grant as long as you live in the place within the first 12 months.CGT – you would be charged on the growth during the first 11 months, and half the growth from there on. If you rent one room out and declare it, then you lose full exemption and can only claim it on the share you are living in.BI…[Read more]

My experiences from a few years ago, Stamp duty is charged at settlement in Vic,

Annyong AdrianI am not exactly sure what you mean!? Under s118-145 of the ITAA you can claim one property as your main residence for up to 6 years after you move out. Becoming a non resident does not come into it. Maybe you are referring to a different section of the Act, of which I am not aware?If you were to sell one property, then you could…[Read more]

Don’t always believe what you hear on the phone when you call. Try calling 3 times to see if you get different responses.

You may be able to claim travelling costs if you could argue you are running a business of investing in property. If you are using a trust or company then this may help.

Terryw
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P_retired.

The LOC Probably would be cheaper, but not many go to 90% LVR.

Another option would be to borrow 90% IO and put 10% in an offset account with the repayments coming from this.

Terryw
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Just watch out for them charging you for the privilage of ripping you off.

Terryw
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I am not an accountant, but think it is worked out roughly like this:
Selling Price, $520,000 minus Value at time of renting, $490,000 = $30,000 capital gain.

From this capital gain you can minus purchase and selling costs such as stamp duty, agents fees and legals.

I am not sure if how they would need to be portioned, but maybe it would be a %…[Read more]

I agree, it doesn’t really make any difference having a trust.

Terryw
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Terry@discoverhomeloans.com.au
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Really, its not that difficult a concept.

Interest on money borrowed for investment purposes is deductible!

Simple really.

Terryw
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You can only borrow a certain % of a property’s value. Usually 80% without Mortgage Insurance. So you would have to work out like this:

Value x 80% less current loan = available equity.

The 80% could be changed up to 95% if you are prepared to pay LMI. In some cases you could even borrow 100% for investments.

Terryw
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Most people do not udnerstand these sorts of loans. It basically is just capitalising part of the interest. ie you only pay part now, and the rest is added to the loan. So unless you have high growth, then you will be going backwards.

There is also a risk the ATO could disallow the interest deduction on the capitalised component.

Terryw
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What about public liability? Just in case someone injures themselves on site.

Terryw
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There are probably only 3 broad types of loans:
Principle and Interest (PI)
Interest Only (IO)
Line of Credit (LOC)

Terryw
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