Please help – Just seen our accountant and we’ve been told we have set up our ownership split wrong. As I am the highest earner in the family the loan was structured on a 90/10 split. Whilst this maximises my tax right now, when we sell our investment property this would take me into sky high tax bracketing. As the property is geared for mostly capital growth, this defeats the object of the property investment. Anyone got any answers????
Hi Mercury
Welcome to the forum.
You don’t necessarily have to sell your property. As it grows in value, you can access the equity and purchase other IPs. This strategy can allow you to keep this property always negatively geared and reduce your tax. New IPs can be purchased using a different ownership split and/or maybe using a trust (depending on your situation).
Personally I would never sell a property only if I really had to.
I would recommend finding an accountant that specialises in property.
Cheers
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auThanks Andrew thats what I will have to do. The property should be positively geared once complete by late September. I need to find a property accountant in Mandurah WA, anybody have any suggestions? Also, if i moved into this property as my ppr for 12 months, there would be no CGT?
Hi Mercury,
Also, if i moved into this property as my ppr for 12 months, there would be no CGT?
As I understand it, this is true – but with some caveats:-
1. As long as you didn’t move into another PPOR (instead, go and rent), or, you sell it as you move out of it.
2. It retains PPOR status for up to 6 years (subject to 1.) after which you must move back in to “restart the clock”.
3. I’m not sure re the timeframe – 12 months sounds OK – but this is really a question for an Accountant (or ATO) to answer…It is always good to run such situations by an Accountant or similar adviser.
Hope it helps,
BennyMy understanding is that you also would have had to have claimed it as your PPOR initially at purchase, then move out at some point and rent for up to 6 years.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Highest income earner holding a CF+ property as majority owner isn’t good.
Do you need to meet an accountant face to face or would you be happy to use email/phone? If you’re happy with the latter – you can choose an accountant from anywhere in the country.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I have always dealt with accountants face to face but a distance one might be OK.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
