Scotty,T the 6 year rule only applies to absences. if you are living there and renting part you are not absent, so s118-145 cannot apply. s118-192 covers earning income from your property and the CGT results.

You could apply the 6 year absence rule to only 1 property at any one time. But where you have lived in both properties as the main residence you could choose which property to count as the main residence for the 6 year rule. You cannot claim it for the room rentals so these will cause CGT to apply.

In your specific situation you could apply it…[Read more]

Assuming you own 50% with your son, this would mean you would be up for CGT on your share transferred to him. He would be up for stamp duty on the value of the share transferred to him – not 50% of the stamp duty that would apply on the whole property.

there is also the option for you to own much less than 50% to reduce both the CGT and stamp duty.

All lenders and the broker will be subject to the NCCP.Can’t lend you money unless you meet certain requirements. But the NCCP only applies to natural persons borrowing.

I just come across this article
http://www.smh.com.au/federal-politics/political-news/labor-offers-to-end-super-concessions-for-the-rich-20150401-1md29e.html?stb=lkn

Quote from teh article
“ASFA shows, for example, that there are 475 people with more than $10 million in their superannuation accounts earning $1.5 million in income and there are…[Read more]

Same tax rates apply to low to middle income earners. No need for a SMSF to get advantages. Laws may change in the future but we can only speculate what these changes will be. The purpose of super is to provide for retirement – but he seems some very well off individuals are takig extra advantage.

I would rather see those with very large balances…[Read more]

If he has a job he may qualify for a loan on his own. There is only a need to show genuine savings if borrowing over a certain LVR – about 85% wit some banks.

Don’t be silly!

Super is taxed at 15% going in, whereas you may be taxed at 47% otherwise. Earnings inside the fund are taxed at 15%, what has you may be taxed at 47%. And once you meet a condition of releases the fund could be exempt from income tax and CGT nd you could be drawing out the money tax free. Super is a tax haven.

Fees depend where…[Read more]

If you could lend him the entire amount he could purchase the property in his own name. You should take a registered first mortgage to protect yourself (and him, from spouses, bankruptcy etc). Once he has it rented and when he gets a job he could refinance your loan with a mainstream lender and you will get your money back. This way there is no…[Read more]

Yes trusts do get access to the 50% CGT discount – or the beneneficiary will if an individual.

Changing title = stamp duty and CGT at market values. New loans too.

Can you lend him the full purchase price?

I charge $550 for structure consults for non clients. There is no simple yes or no answer, but if you want to claim negative gearing you will have to own the property, or the units in a unit trust. To be able to claim the interest you must have a right to the income and capital.

Unless your daughter is 18+ she could only earn $416 pa and not pay…[Read more]

I recall reading that there are several SMSF with funds of over $100mil that are in pension phase and earning tax free income.

I am a financial advisor too – see http://www.finwealth.com.auu

Not really, unless 2 properties are securing one loan. But it is not entirely as safe as going to a separate lender.

Best to avoid a joint loan if possible, for 3 main reasons
1. Unnessarily exposes the non owner to risk
2. hurts the serviceability of the non owner, and
3. Offers no benefits at all

This sentance is unclear.

If you have a LOC with a limit of $100,000 but a balance of $0 and you go and buy a golden potato peeler for $1000 the balance is ow $1000 and this is a private expense. No interest deductible.

But if you go and deposit $1000 into the LOC you will be paying the loan down to $0 again, so if you borrowed $50,000 for a…[Read more]

No you can’t. Both stamp duty and CGT will be assessed at market value. There will also be tax and asset protection issues with receiving a gift so best to structure this as a sale at full market value, properly contracted.

consider also parents just keeping as is to save costs. It could be gifted to you eventually via the will with no stamp duty…[Read more]

My advice is don’t do this.

You are borrowing now to invest in a savings account. later you will invest. This breaks the direct connection between the borrowing and the production of assessable income. you might still be able to argue the interest is deductible as you can trace the borrowings.

But if you put $1 or more of cash into that offset account it will be a mixed…[Read more]