Its a bit late if u have alreDy entered into contract. Work out the structure in advance.

Generally ownership determines deductibilitywhere spouses are involved. So X owning with the loan in the name of X and Y would mean X claims all xeductions and gets all income.

You can lend me money anytime. Are you referring to borrowing money?

Yes guarantees generally count as loans for serviceability purposes.

1. Yes can generally claim all expenses not otherwised claimed – used to increase cost base.

2. No

3. get some advice

4. see a different accountant.

5. possibly

Sounds like other people are asking you answers to tax questions and then you are asking others for the answer. Are you a lawyer or a tax agent? If not then I would suggest you not…[Read more]

no you don’t

I haven’t read the link, but…

I just did a loan for a person who earns 10 times more from rents than her salary. One lender wanted to do the deal as a commercial loan because of the number of properties she owned, but other lenders didn’t have a problem with it.

You can restructure but what are you trying to do? Increasing a loan wont necessarily mean more tax deductions.

I would be worried about 2 main things:

1. Child porn/copyright infringment, and

2. Internet not working – they will be complaining constantly.

Cross security is using 2 properties as security for one loan. This can be avoided completely in this situation and you could borrow 105% (ie full price and costs) without crossing and without incurring LMI.

Yes I think you should consider the ownership structure in more detail.

Any property you buy will be cashflow positive very soon, if not immediately. This will then result in even more tax payable if you own it.

Can’t see why someone in your situation would even consider paying LMI. Just a waste of money in this instance. with your option C…[Read more]

I guess you could look at it this way

$400,000 purchase valued at $360,000 with a $30,000 commission

or

$400,000 purchase valued at $410,000 with a $10,000 fee

Richard I disagree with this bit. Carefully structured each trust will get a separate threshold in QLD due to s20 Land Titles Act QLD.

My answers

1. Yes
2. Run, very fast, away from a club flogging properties – they are probably over priced.
3. stay away from these.

The tax agent could provide tax advice in relation to teh development and structuring, income tax, CGT, GST, land tax, stampp duty etc.

So could the lawyer, but the lawyer could also provide the legal advice such as ownership structure, how to structure companies, trusts, successsion issues, asset protection issues, related party loan…[Read more]

Depends on the wording of the content rather than the title of the document. Under contract law an offer once accepted can become a contract. And a contract can be oral. But for a contract relating to land to be binding it has to be in writing – could be an informal back of the envelope type writing, a formal contract is not really needed.

So…[Read more]

Be careful, your written offer may amount to a contract if the other person accepts. Best to use a solicitor to get legal advice.

In my experience there are few people who never sell. A property will change hands eventually, even trusts end in 80 years.Buying in a trust now will mean always subjecct to CGT, even if you live there, land tax in most states and eventually the property will be positive geared so you will be paying tax on something you wouldn’t otherwise.…[Read more]

Be careful in using cash. Once used it will be tied up and there are tax consequences. Get some legal advice on some related party loan strategies so you could still avoid the banks but use the cash and not suffer the tax consequences. Asset protection is another bonus.

Bending the truth is a euphamision for fraud usually. best not to committ a crime if possible.

Depending on the situation it would be best not to use the word ‘development’ anywhere – such as in company names, email addresses etc.
Avoid getting too many properties in your own name – I just had one bank reject a client as a residential lender…[Read more]