6 month rule only applies when buying replacement home before selling old home.

Also keep in mind no main residence cgt exemption when held on revenue account.

Yes still possible. 6 year rule. S118-145iaa97.

But if second house sold it would be partially subject to cgt

Nope
Nope

This expense doesn’t relate to current income.

If the trustee is conducting a business it could be deductible to some extent.

Anti money laundering legislation breached? Potentially serious crime.

No. Buyer beware.

Who told you that? They are confusing the 50% CGT discount with the main residence exemption.

The sale of the main residence could still be exempt from CGT if sold within 12 months.

It seems the property has been sold for $250,000 more than purchased, but there are other costs that can be used to reduce the CGT – stamp duty, legals, agents fees etc. Let’s say this comes to $50k, that would make a gain of $200,000.

you could then apply the 50% CGT discount so this becomes $100,000. This is added to ‘your’ other income. So if you were working and earned $200,000 from other sources you might pay around $47,000 in tax. If you don’t have any other income at all then the tax would be more like $26,000.

Huge difference to your estimate.

There are plenty of things that you can do to reduce the tax such as contribute to super, prepay interest, realise capital loses.

There are also small business concessions:

a) the small business 15-year exemption
b) the small business 50% active asset reduction
c) the small business retirement exemption and
d) the small business rollover

b) the small business 50% active asset reduction might be available in your situation.

Only tax agents or lawyers can provide tax advice. Redwood is a tax agent I believe.

Remember security for the loan doesn’t determine deductibility of interest. It is the use that counts.

Perhaps it is a breach of copyright or licence – you are paying for one off use.