Originally posted by dacium:

The reason for this is because if you don’t pay GCT you are liable to pay back all tax you have deducted over the years as a ‘loss’ on an investment house that didn’t end up being classed as an investment, and you will have to pay the money back with interest.

I disagree with this.

Maybe you are confusing adding…[Read more]

Nicko

A HDT is a discretionary trust with the ability to issue income units. The individual then is able to borrow to buy the income units and can claim the interest on this = a way around the negative gearing in a trust issue.

If you are going in a project with another, then you could set up another structure (maybe a unit trust) or your trust…[Read more]

There is actually a tax ruling on this in relation to a unit trust. The ATO didn’t like it as they deemed it a scheme to be able to claim the expenses on what would otherwise have been a person’s main residence.

But it could possibly still be done with a bit of careful planning.

But remember, trusts cannot negative gear. So your trust would need…[Read more]

A disrectionary trust is certainly the easiest and most flexible. But this can be done with a company too to a certain extent. eg. If your company wants to distribute to X, then X would simply need to do some work for the company and invoice it.

I don’t think there are any stamp duty issues when transfering income units with a hybrid trust.

Terryw
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go to http://www.lawcentral.com.au and look through the documents there. There is one called something like ‘agreement to jointly purchase property’ which may be what you are after.

Terryw
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Very good Spock. You should be able to pay off the next one faster than the first as you have less interest accruing.

AS an aside, I have come across a client who is currently pay 31% on his home loan as a second mortgage and 12% on the first. An evil broker exploited him by charging him $20,000 for the priviliage. I am refinancing him to…[Read more]

I would agree with Elka. Getting good tax advice is essential for something like this. Since it is a complex area, I would suggest you talk to a few different accountants as good advice could save you tens of thousands.

Terryw
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Hi Joel

Have a look at the ATO site, http://www.ato.gov.au and download the CGT booklet. It has a heap of examples in there relevant to this.

Find what the rules are and then work around them.

If you move in and move out, you can still treat the place as your main residence for up to 6 years with a few conditions. After you move back in and out again,…[Read more]

Dacium

That is true to a certain extent, but not necessarily always the case. Some lenders have a higher servicing requirement for higher LVR loans, so the more the deposit the easier it will be to service.

Also the higher the deposit the less they look at blemishes like small phone defaults etc.

Terryw
Discover Home…[Read more]

Hi

I am not sure, I think there is provision for purchasing a house that is already tenanted, where you can still claim it as your main residence as long as you move in as soon as practical.

Terryw
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I like ANZ on their breakfree package, but they are not too good with trusts. Most of my Trust clients go into St George.

Terryw
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Are you asking what the implications are for a beneficiary of the trust to transfer a house they own to a trust?

I think this would be a straight sale with no unusual implications. It would be just like selling to a third party.

Terryw
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I will not deal with that bank

Terryw
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Hi Marc

Even when personal debt is fully paid out, I would still suggest looking at putting spare cash into a offset account rather than paying down the loan.

THis is because you never know when you may need that cash for personal reasons. eg. upgrading to a new home, takign an expensive holiday, expensive medical emergency, gifting family…[Read more]

Move in move out again and establish it as your main residence. Then you should be able to get CGT exemption on it while renting it for up to 6 years.

Terryw
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Move in move out again and establish it as your main residence. Then you should be able to get CGT exemption on it while renting it for up to 6 years.

Terryw
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Yes, borrowing more initially will mean less equity, now and the future.

Terryw
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F

thats correct if you go to 80%.

Terryw
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Hi F

I am not a tax agent, but ..

I beleive the interest on any borrowings for investment purposes should be deductible. So this should include interest on the portion borrowed to cover stamp duty and borrowing costs.

The borrowing costs themselves could be claimed over 5 years.

The stamp duty etc could not be claimed now as they are purchase…[Read more]