Thanks Rob for that.

s114-10(7) says that the survivor is taking to have acquired the interest of the deceased at the time the deceased acquired it and the 12 month discount would be applied fro that date.

http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s114.10.html

How can you understand that? it is just my opinion.

You must do some indepth research, thinking and planning. And in the end it will depend on the property too.

With no capital growth you are probably better to keep your money in the bank!

If you invest in a cashflow property returning 8% then have you worked out what you will get after expenses. You must factor in high costs for repairs too.

Of course with leverage things may work out better and there could be some capital growth.

And, if you have that much cash sitting in the bank you need to get some good legal advice as well.

My view is that none of the interest will be deductible if you put the money into an offset account. Once it hits the offset it is no longer borrowings. See the Domjan case – although Domjan was denied deductibility because the borrowed funds were mixed with non borrowed funds in the offset.

Use a LOC as it is not worth the risk. Or use a term loan with redraw and have the funds sitting in redraw ready to invest. Make sure this is a separate split though.

As for the interest on the buyer's agent fee. This will relate to a property which you have not yet purchased. So I am not sure how it would be treated. Would be interested to know what the accounants think.

Where will you put the money? If you borrow it then you will have to place it somewhere until you use it. This may break the connection between borrowing and investingl

 You will be selling the car and receiving cash. that generally poses no tax issues.

That doesn't mean you can claim the interest on the car. that would be a separate transaction. If you are using it for private reasons then the lease wouldn't be deductible. But if this is a salary sacrifice arrangement you might be reducing your income by the lease amount and saving a bit of tax.

12 months is from date of contract for purchase to contract to sell

hi

I don't know much about easements. But they can be not registered and still valid.

EG. s42(1)(A1) Real Property Act 1900 (NSW)

REAL PROPERTY ACT 1900 – SECT 42 (NSW)

http://corrigan.austlii.edu.au/au/legis/nsw/consol_act/rpa1900178/s42.html

42 Estate of registered proprietor paramount

(1) Notwithstanding the existence in any other person of any estate or interest which but for this Act might be held to be paramount or to have priority, the registered proprietor for the time being of any estate or interest in land recorded in a folio of the Register shall, except in case of fraud, hold the same, subject to such other estates and interests and such entries, if any, as are recorded in that folio, but absolutely free from all other estates and interests that are not so recorded except:

(a1) in the case of the omission or misdescription of an easement subsisting immediately before the land was brought under the provisions of this Act or validly created at or after that time under this or any other Act or a Commonwealth Act,

hi Cathy,

I am not an accountant, so cannot be sure, but if there are losses in the trust and these cannot offset the capital gains then the losses would be carried forward to be offset by future income.

But you would need to go about things very carefully as one of the requirements for a valid trust is property. So you would have to keep some property in the trust (maybe even $10) even though it would have a negative balance and negative income.

I would imagine that your interests in the property would be treated separately.

If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence