Hi,
Would like some direction on how I may be able to move into IP, and lease out PPOR, in the most tax effective manner. Currently owe $65k on PPOR and $340K on IP.
Want to minimise personal debt, looking at paying off PPOR in two years.
Any thoughts??
[biggrin]
Can’t be done straight forwardly in a tax effective manner.
Any increase in your PPOR loan would not be deductible if the funds were to be used to pay down your IP loan if you are going to live in this property.
You could sell your PPOR to your trust, borrowing to do so. This would be classed as a sale, stamp duty would be payable again, but CGT would probably not apply as it was your PPOR. The proceeds could be paid off your loan on the old IP. The new borrowings would be deductible for the trust as it is for investment purposes.
However trust losses cannot be offset against personal income, but a hybrid trust could enable this to happen.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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