Hi SML and AllDefinately no backdating . . .  ever,Unless your are the PM or Treasurer or some other Pollie we cant re-invent the past You must transition your affairs with complete transparency else you may find that it will cost you in the future.I am waiting for RobG to come back as I am interested in his information, butremember when and if…[Read more]

Hi Rob and AllThanks for your contrary view, please substantiate ASAP,RegardsAnthony

Hi SML and AllJust a re-cap on the trading co and new DT.First you appear to have begun trading in the current tax year ? If yes you can change now, BUTFirstit's not good to use an old company on a new trust as it might have attracted some financial dirt along the way a full service company wher you just place an order costs about $650 ($412 for…[Read more]

Hi AllThis is a good place to see how others think and highlights how we are all different in how we think.I have a couple of useful thoughts as follows:It's generally held by these forums that debt is good AND bad. Good is deductible interest, bad is non-deductible interest. But in my view any expense is still a cost – "good" debt may cost a bit…[Read more]

Hi AllI hope you all noted the pearl of advice that Derek just gave you,Its the bit about knowing your exit strategy ……… I see so many people trying to solve the problems that arise from divestment after the event. That is they have a big CGT bill and then ask "what should I do ?" when the coirrect question is how could I have planned my…[Read more]

Hi Luke, Terry and AllYesThis is one of the strategies we use in our TEBL Trust arrangement.Also please note that some people have been referring to "distributiing" or "transfer" of losses – it's not legal and its a breach of tax regulations.In all cases – persons, companies and trusts, losses (revenue or capital) can only be used by the entity…[Read more]

Hi TerryW and AllYou are right Terry however I use a special kind of trust which has compartments that can segregate assets used in a business.This allows the trust to keep real estate apart from the trading activities. We use a specially designed trust and strategies withhigh cash flow businesses like Child Care or hospitality related…[Read more]

Hello Gips & AllThe gross return on your own business should exceed 25%,  + some Capital Gain, the return on property at best will gross say 5% – 7%  with little personal exertion if you engage an agent. Just work out your hourly rate of return from both and assess the opportunity cost and risk. Do you feel that you can expand the business by p…[Read more]

Hi TerryW and All,Yes the 6 years CGT treatmewnt is correct.Trustee duties can be found in 2 places, in the specific trust deed or any amendments and where that is silent or ambiguous. in the Trustee Act for each State or Territory.There are provisions and rulings in the ATO legal database regarding rent and expenses and related persons or…[Read more]

Hi poweregg and All,I have been working in this area for over15 years doing planning for investors, mostly business owners,Q1. You can move out of your PPOR for up to 6 years without losing the CGT exemption, and provided you move back in for a while – say six months you can repeat that process without detriment,In you current situation – rent…[Read more]

Hi MelbGuru & AllMust toss in my 10 cents.First of all CRJ is correct, NO CGT as the land is trading stock for a developer, However if you decide to hold the profit in the last one or several properties as an investment rather than buying a separate property – you can rent them out and gear them to provide any cash you might need. This way you…[Read more]

Hi Babee & AllThis needs some care,Except for possible subdivision its probly better for you to lend to your parents under a written agreement which gives you the right to register a caveat over the property as there are some variables.Suppose selling the investments timing doesnt fit in 2 years,  or  their plans change thro illness or whatever, t…[Read more]

Hi Lesley & AllJust remember you can leave your PPOR for up to six years and rent it out without loss of CGT freedom, then your loan interest becomes deductible and you have other tax offsets.Basic weekly cash flow will be similar as your rent in equals rent out if both properties are similar You can make application for PAYG tax variation to…[Read more]

Hi JoshI have been working on a project for people in your position for almost 3 years and have done heaps of research during that time.My results tell me this:1. Buying an investment property before a home is paramount, Why ?Simply because the Govt. support is much larger by a country mile and that support is for all years you own the property…[Read more]

Hi kwjegates and All,I see you have all your eggs in the personal basket.Its very common and in fact I think its the most common – but not in my view ideal.There are 2 issues regardless of your exact circumstances:1. All your assets are exposed to personal liabilities, and a problem with either property impacts on all of them2 If you ever wanted…[Read more]

Hi Wattp,I see you already had some feedback, just one small thing – if you have a SMSF (if not you could get one),. then you could get the fund to buy out the other 2 partners and you can keep your friends. I would rather have 2 friends than a bill and a lawyer ).Or you could get the SMSF to take over all of it, in both cases you could have the…[Read more]