double post

the agent is your agent. you have given them permission to act on your behalf. if they have done something exceeding their power then they can be personally liable. but what are you seeking in this? was the hotwater system too expensive and do you want a reduction? legal fees will exceed the cost of the hws.

the plumber probably has clauses in his contract that he retains ownership of the items until paid. he may also be entitled to go onto the property to take his items.

i would suggest you be very careful how u proceed.

Probably cross collateralised, or used a LOC for the deposit etc

There are also a few private rulings out there where the ATO actually said it was ok – these only work for the individual that applied for the ruling. Might be good ammunition to rely on though if you try the same.

PBR 94313 http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/94313.htm

PBR 93035 http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/93035.htm

PBR 93707 http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/93707.htm

PBR 94313 http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/94313.htm

One where they said no

PBR 1011345133229 http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/1011345133229.htm

Alex, You have to look at SIS reg 13.22C from memory. A superfund cannot invest in certain assets but can buy shares and units from a related member if there is no mortgage or lien on the property owned by the company or trust.

If there will be borrowings then a separate bare trust needs to be set up so that none of the SMSF funds assets will be used as security.

you also have to look at the ADI requirements.

Its a tricky area.

Yes, this can be possible. There is a precedent case involving a person who borrowed to buy a business and the business went bust – company in liquidation I think. They were able to keep claiming the interest.

My reading of that TD is that the ATO can apply Part IVA of the Tax Act and deny the deduction if the dominant purpose is to pay the home loan off sooner.

This doesn’t necessarily mean it cannot be done. There is another ruling which says capitalised interest retains the character of the underlying loan, so if the base loan is deductible the capitalised interest can be deductible. But that has to be read with the newer TD mentioned above.

Part IVA is used to deny a deduction if it has a dominant purpose of tax savings.

Jact, Sounds good in theory, but have you read TD 2011/D8 or sought advice on this?

And, why would not a 'normal' LOC work?

Gee that is fairly costly then.

Yesterday I did some financial planning training. Now I am a solicitor and chartered tax advisor and a mortgage broker. Once I set up as a planner I will be able to do the complete advice and set up all wills with testamentary trusts,inter vivos trusts, smsfs, loan agreements structures etc. I was intending on charging about $5000 to $10,000 for all this per couple and then rebate any commisisons from loans and insurances etc. There are not many fin planners that are also solicitors

This is one of the problems with using a conveyancer. Did you get legal advice on the release of the deposit?

It is the bank’s money so they can make up the rules. Complaining may or may not help. Its like you asking me to lend you money and I say I will if you do x. There may be no legal requirement to do x, but that doesn’t mean I have to lend you the money.

You have to act fast. Maybe a different lender?