You say this purchase brings both properties up to 90% LVR. But you should be attributing the loan for the deposit, presumably on the PPOR, to the investment property. Interest on this loan will be deductible against the IP. So the loan you can claim on the PPOR may be lower than expected. Also any increases of the PPOR loan, or any withdrawal…[Read more]

Pay more what?

Paying principal of a loan is not deductible.

Why would you want to make it negative? That would mean you are losing money. You would be spending $1 to save 45cents. Doesn’t make sense.

If loans then a credit licence is required = mortgage broker.

The ebook is in the signature
“Trusts and Tax for Property Investors” download free at http://www.propertytaxsolutions.com.au/

The loan agreement is that between the trustee as borrower and yourself as lender?

BTW, I think I cover some of this briefly in my ebook, and I am writing a more detailed book on trusts, mainly from the legal side of things.

It is critical that you establish whether the contribution to the trust is a loan or a gift. This is from a tax perspective as well as from an asset protection perspective.

If you borrowed the money to lend to the trust, who is claiming the interest on this loan? If it is you, then you shouldn’t be. If it is the trust then there seems to be no…[Read more]

You must treat the ‘trust’ as a separate person and segregate the trust assets including income from rent, cash etc from your own assets. Does the trustee have a separate bank account for the trust money and rents? And how did you use your equity in your personal property for a property purchase in the trust?

Which they coincidentally happen to be selling.

Beware.

The beauty with these sorts of projections is you can make things up to suit the desired outcome. Doesn’t mean things will pay out like this , but it sounds good.

PPOR – you sound like you could be messing things up with the trust assets and loans. You need to keep your personal finances and trust finances separate of the trustee could be in breach of trust. You shouldn’t be paying into a trust loan without thinking carefully about it and properly documenting whether it is a loan or a gift.

Trust loans…[Read more]

Yes can keep loans with same lender without crossing.

ME Bank recently increasedd their 3 year fixed rates too Could this be the start of the upwards trend?

Hard to say without knowing any details. Assuming they all beneficiaries worst case may be just under 25% tax. They should all sit down with their tax advisor and work it out – well in advance of 30 June

You can claim many things. Building works may be depreciated though.

Go back and look at a house your parents bought 30 years ago. If they paid $50k for it then it may be worth about $1mil now. Imagine if they had an IO loan of $50k for the full 30 years. One year’s rent would almost be able to pay it off.

Bankwest, Westpac, ANZ, Combank are all tightening up. More will follow no doubt.

Is it income or capital? or a bit of both.

Trustee will pay 47% on income retained in trust. Companies are taxed at 30%.

Buying $800k worth of shares is a capital expenses and not deductible so this won’t wipe out tax debt.

That financial planner sounds like a sales person.

The type of advice you seek is not really regulated so either a financial planner, a tax agent, accountant or a broker could give you the advice. It is not the qualification you should be looking at but the style of the advisor.

A company is treated as a separate person and gets its own land threshold separate to that of its shareholders.

This is really a question for a lawyyer as there is much more to it than the tax side