CBA have tightened up, but they will still lend to people and companies acting as trustee where they hold credit facilities with CBA already for more than 6 months – and this includes guarantors whether acting as…[Read more]

That is a private matter between the mentor and mentee – a contractual matter that would vary between the parties. All that the ‘industry’ requires is s…[Read more]

2. Yes there could be better ways, especially considering the tax aspects

If not then stay clear, and report them to ASIC.

Did they approach you or did you approach them? I would never use a company that approached me, especially about financial matters.

A second mortgage could also be unregistered, it would then be an equitable interest. A caveat could be lodged, potentially, over the property…[Read more]

If the directors set up Company B for the next purchase (whether it acts as trustee or not) it will borrow. The debts of Company A are no able to be counted as debts of…[Read more]

Keep in mind too that a mortgage is different to a loan.…[Read more]

e.g. Trust Co Pty Ltd owns the property, as trustee, but Homer needs to be the borrower so he can claim the interest on the loan that he has used to acquire units in the trust.

The owner Trust Co Pty Ltd is the mortgagor. Homer…[Read more]

Keep in mind they were predictions

Did you do some planning before purchase so you could minimise land tax?

Do you guestimate they will be growing more than they are costing you? if so it might be worth holding. ALso have to factor in the opportunity cost of having the money tied it, the…[Read more]

Best to seek legal advice before purchase and consider entering into a deed of partition so the titles can be transferred…[Read more]

2. Not true

3. Yes – a little ASIC fee plus tax returns

4 yes

5. trusts can negative gear like any taxpayer.

6 year rule can apply even if you do buy another main residence- but you can’t claim the exemption on both for the overlapping period

You shouldn’t be paying off trust properties as that will create legal issues. You could gift the trust (the trustee) money or lend it money which it can store in its offset account or pay off the loan. Either will decrease the expenses and mean the trust will have a larger taxable income so it could result in more tax.

2. The trustee…[Read more]

But if the trustee as the same company you are referred to? There is a common law rule against contracting with yourself, even in different capacities. but the ATO seems to allow it for tax purposes. Best to seek legal advice

This might be taken out of context or is a bit vague. First what are you trying to protection the property from? Creditors on bankruptcy? A trustee of a discretionary trust can still hold a property and let a beneficiary use it, perhaps rent free, if they have…[Read more]

This might be taken out of context or is a bit vague. First what are you trying to protection the property from? Creditors on bankruptcy? A trustee of a discretionary trust can still hold a property and let a beneficiary use it, perhaps rent free, if they have…[Read more]

This strategy works with companies – the company could be acting as a trustee or be acting in its personal capacity. i.e. a trust is optional – and in fact should be avoided in many cases due to the land tax laws.

At the very least it might be worth shifting the cash in the offset to the loan on your main residence and to break this fixed period.

You could also consider investing in a different entity, a more tax effective one,…[Read more]

At the very least it might be worth shifting the cash in the offset to the loan on your main residence and to break this fixed period.

You could also consider investing in a different entity, a more tax effective one,…[Read more]

but

1. No that is not correct

2. No that is not correct – loans have no bearing on CGT

a) cost base reset to the value at date first income producing

or

b) above plus using the 6 year rule and apportioning.

seek tax advice

Assuming PI residential rate with minimum expenses it would probably neither improve nor decrease serviceability