Forum Replies Created
Let me see if I can clear this up for you.
If you purchase and sell an investment property within a twelve month time frame, you will have to pay tax on the total capital gain at your marginal tax rate.
In other words, if you earn $50k from earned income (job) and then you make another $50k from capital gain, your total taxable income is $100k which will be at the marginal tax rate.
If you hold the property longer than twelve months, there is a 50% discount on the capital gain.
So again you earn $50k from your job and another $50k from a property held for longer than 12 mths. In this case you would add the earned $50k and 50% of the $50k profit from the IP. This total is $75k and this would be taxed at your marginal tax rate.
Hope this helps
CATA
Asset Protection Specialist
[email protected]Agree Terry.
Some accountants are good with trusts, as are some Discover Home Loans mortgage brokers (you can pay me for that plug later Terry, lol)I find that I have solicitors and accountants calling me for my opinion.
The two profesions from the same firmis not a bad idea.They should be working together instead of conflicting advice, in theory.
CATA
Asset Protection Specialist
[email protected]The only problem with an IO loan is that if you are going to live there (which you are) the loan will need to be P&I untill you move out. Then you incur refinancing costs.
Could you paint, cheap reno on the kitchen/ bathroom?
CATA
Asset Protection Specialist
[email protected]Or you could gift/loan the money to a trust and the trust purchases the property.
Could you restructure the business to be more tax effictive?
What are you dealing in?CATA
Asset Protection Specialist
[email protected]Originally posted by DraconisV:I’ve got confusion here aswell.
Does this mean that my old loan is now 150,000 and my new one 300,000.
That is my understanding of it, you borrow against your existing equity to use as a deposit on another IP.
Remember, the only silly question is the one not asked.
CATA
Asset Protection Specialist
[email protected]Originally posted by Derek:HI Cata,
You are a fool.
Do you realise that y posting this email here you have given up a possible US$825K windfall and potentially diluted the returns to US$22K/head (and falling) distributed equally amongst those who read this thread.
At this rate the scam will be worthless ………………………ooops – I just realised what I said – it is worthless.
Derek
[email protected]
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113Nice derreck lol
CATA
Asset Protection Specialist
[email protected]Hi Elka
I think they try to get all your bank details and then empty your accounts. I still can’t believe that people fall for it.
CATA
Asset Protection Specialist
[email protected]Hi Len
I have to agree with Richard.
You know, some of these mortgage brokers are smarter than they appear. What happened to you at the get together Richard?CATA
Asset Protection Specialist
[email protected]Keep your cool George.
It sounds like the litigant is trying to make you sweat. The best thing you can do now is wait for your legal advice.As much as everyone here is willing to help, and there is some qualified people here, no one here has the knowledge of your case except your legal team.
It souns to me like you have done nothing wrong except been taken by a gold digging scumbag. The downside to public life.
Hope it all works out well.
CATA
Asset Protection Specialist
[email protected]Tha Addition or removal of beneficiaries to a trust and how it is done will depend on the wording of the trust deed.
In most cases it will cause resettlement, a rather costly exercise. Other deeds allow this with a simple minute entry, which I can supply a template to my clients. Quick and easy and much more flexible this way.
Keep in mind the wording of any document can change it, and the way the wording is read is also questionable.
CATA
Asset Protection Specialist
[email protected]In Qld you need to give 7 weeks notice (from my expirence) for a rent increase, with a maximum increase of $20.
I say with the improvments you have made, put the rent up by $20 or up to market value. The tennants can then have a choice to leave or stay, at which point (if they decide to leave) the rent can go to market value.CATA
Asset Protection Specialist
[email protected]Originally posted by Terryw:There is also the ability to name beneficiaries. But why name someone if they will be included anyway as a general beneficiary? Some lenders want guarrantees from all adult people named in the trust deed.
It can also be an advantage if you can add/remove beneficiaries with a minute entry. This allows you to borrow money with only one beneficiary and then add more if wanted by the trustee.
[/quote]
In some cases it is better for a company to be trustee. It is safer from an asset protection POV and also easier if you want to change directors and hence change the guarrantor for the next loans etc.[/quote]
Agree completley
[/quote]Sometimes when dealing with solicitors or accoutants, they do not realise the lending issues.
[/quote]Unfortunatly this is possibly the bigest issue. Not everyone takes into consideration all the aspects of the trust, and there are alot of areas to think about. This comes back to my point about online structures and the lack of knowledge in this area. You can save a bit not and pay in the long run.
CATA
Asset Protection Specialist
[email protected]Online trusts IMOP are possible not the best way to go if you are don’t know much about trusts and the process involved. I have also heard some intresting stories about some online document providers.
Sometimes you get what you pay for, I have seen deeds on e-bay for $37.50.Send me an e-mail if you want to chat.
CATA
Asset Protection Specialist
[email protected]Exactly Terry.
Is the deduction worth claiming?
A reverse tax audit will cost you if your accountant has to do it.
The question is will the return outweigh the cost of the ammendment?I did this last year and for me it was worth it, but you may fing that if it costs you say $200 and all you will get back is $100, is it worth doing?
CATA
Asset Protection Specialist
[email protected]You may need to do a reverse tax audit.
CATA
Asset Protection Specialist
[email protected]Very generous of you Gary. Time and resources are valuable to any club.
CATA
Asset Protection Specialist
[email protected]If you are trading as a sole trader you can use your existing TFN.
CATA
Asset Protection Specialist
[email protected]One of my favourite quotes
“If you fail to plan, you plan to fail.”CATA
Asset Protection Specialist
[email protected]I can’t agree more Terry.
The few times I have spoken to a FP, I have shown them a thing or two.CATA
Asset Protection Specialist
[email protected]I can’t think of anything he has done that was not directly or indirectly for self promotion.
I have little time for him or anything he is involved with.
CATA
Asset Protection Specialist
[email protected]
