If you borrow to acquire property the interest will generally be deductible if that property is available for rent.

The first thing you have to understand is a business is not a separate legal entity or tax entity so registering a name will make no difference.

Cattleya – many errors
Company tax is 30%
Land tax is state based. A company owning land in NSW will get a threshold of $432k if not acting as trustee.
Not sure what you mean about if you want the…[Read more]

Wouldn’t most people receiving a secret commission just ignore your email?

Not sure what being uni students has to do with it either?

I don’t think this will work unfortunately.

Wouldn’t be deductible though – especially expenses for the kids.

Its a question of fact. If queried you will have to prove you have lived there as your main residence.

Sounds like what you are doing is working fine. you should be able to ‘retire’ very soon, if not now.

3. Try a lawyer for this as it is legal advice – Corporations Act. Tax agents can only advise on the tax aspects.
You will find the asic fee for setting up a company is something like $465 – plus the time for the advice and the administrative set up costs. Do you know the legal consequences of being a director of a company, how to structure a…[Read more]

Hi JJ – thanks for your message – I don’t take on these sorts of matters sorry.

Get legal advice.

Discretionary trusts are generally dont pay tax if the income is distriuted but if it is not then the trustee will pay tax at the top rate.

Nope. No minimum time listed in law. As long as the property becomes your main residence this section should apply – as long as the other requirements are met.

Best to get a valuation to avoid arguments about amount.

You need to consider deductibility of interest for the purchaser’s loan on the new share and you also need to consider the stamp duty and CGT issues. Don’t forget estate planning such as wills, loss of capacity etc.

If your funds are in the offset account you can just withdraw then and the interest on the loan will increase. Providing this loan relates to the purchase of the property the extra interest would be deductible once that PPOR becomes available to rent.

CGT won’t apply for something like this as the property will be treated as trading stock. It would be good if you could hold on for a while so you could get CGT applied. The max tax rate would then be 24.5% or so, but this could be much lower. Consider utilising a trust too. Not necessarily the property owned by the trustee though.

s 118-145 ITAA 1997

True in certain instances.

If you rent the house out first it will always be subject to CGT – but the effect will be small if any.

Spousal loans and/or related party loans can work well for asset protection and tax savings.

Pete – good points but you have mixed a few things up. Gifts can be attacked even if they are made before death. This is especially the case with elderly. There are many ways to attack such a gift under the laws of equity. There is also the NSW law of notional estate orders under the Family Provision section of the Succession act. Any undermarket…[Read more]

That would not result in any tax savings at all. It is NOT possible to increase the loan and claim the interest.

The Portfolio loan is a great product, but it can be a disaster if used a certain way. Some advocate crossing several properties to get one big portilo and this can ruin retirement if a property is sold as the lender may use the funds from the sale to reduce overall debt with the bank. but the main issue is if you are using the LOC as a…[Read more]