hi Grug

I don't think your situation is unique, so the standard advice of Richard should apply. Even if you have high income, don't pay extra off any loan as you don't know when you will need access to your cash again. Best to use IO loans on all properties with spare cash saved into a 100% offset.

The only time this wouldn't be recomended is when you are the type to start spending all spare cash – ie a spendaholic.

Just take it into account when dividing up things.

Tailsman

They are separate, CG and incomes, but do interact as in the end it is all income.

Trust assets can be identified in a number of ways – but the title is always with in the name of the legal owner = trustee.

– Firstly you will often have signed contracts as XXX Pty Ltd as Trustee for the ABC trust.
– There will be other correspondence such as letters with conveyancers.
– There will be tax returns showing the trust is operating the assets
– The trustee's tax return will show nil
– You company will have no other role (or shouldn't)
– There will also be minutes of the trustee or the trustee's representatives showing their decision
– The trustee can also lodge a caveat on the title showing that they own the asset as trustee.
etc

eg. Say you had a CG of $50,000 but an income loss of $30,000

The CG would be added to your taxable income so you would end up with -$30,000 + $50,000 = $20,000 income.

Or even better if you get the 50% CGT reduction.

Would this be correct Dan?

Ideally just take the money from the loan direct to the purchase/deposit etc. This is not always possible though, esp if there is no cheque account on that loan. You could get a bank cheque drawn up maybe, but a bit of a hassle.

If you are going to do it then better to transfer the money to a new account. If the account already has funds in it how do you distinguish the funds and only remove the borrowed portion. Its like urinating in a bucket of water – how can you just take out the water once they are mixed.

If serviceability is a problem you may be able to bring someone else on board who can help. ie someone on a high income who can help you get over the line. They could take a share of the project for their input.

Yes you can do that, but stamp duty will still be payable.

What you are doing is onselling the property. Whether you settle or not doesn't really come into it. You will pay stamp duty on your contract price and the person you sell it to will pay stamp duty on their contract price.

A possible way to reduce stamp duty is to buy an option on the property and then onsell the option. It may save you money, depending on the state you are in – don't think it works in Vic anymore though.

i don't think it would apply to residential property, unless brand new.