Penalties from the ATO.    If they have redrawn previously for a non income producing purpose, then the total interest on their current total borrowing will not be tax deductible if the property becomes an IP

Why are you using a company?   There is no discount on CGT for assets held by companies.

Are you buying a motel to operate yourself or the freehold of a motel that is leased out and will continue to be leased out?  Will either you or the SMSF need to borrow?  does this fit within the investment strategy of the SMSF?   

Did you get a survey done when you purchased the property?  If so, what does that survey show?

If there is a shared driveway, is an easement registered on the title?

These are the first questions you need to get answered.

Qlds007 wrote:

As Jac mentioned you do it by knowing the area inside out and if that means driving around for suburb hour after hour.

I would endorse what Richard is saying.  Knowing the area means you can identify a bargain when you see it.

This was one policy which covered multiple properties

Is it feasible to combine all the properties on one insurance policy.  I had a friend who did that several years ago and reduced his premiums substantially

If I were the Commissioner for Taxation I would probably look at an assets betterment assessment and let the Obeids argue they shouldn't be taxable, the onus would be on the Obeids

From a centrelink point of view it would be an asset and probably have a deemed income anyway

Normally the gain would be apportioned between the periods it was not being used as the PPOR  and the time when it was subsequently the PPOR

Get professional advice, don't rely on a forum.  I have shown in my previous post some of the issues you need to make sure your adviser considers.  Your builder mate won't pay CGT, he will pay tax on his profits because he is a builder.  You need to consider GST too on the sale

Yes. I would think the purpose of the legislation is to stop all argument about whether a landlord has mitigated the loss.  I resigned a tenant to a long lease using that clause.  It might take more than 4 weeks to relet, there will be costs incurred during the vacancy, but this clause means if I want I can do some renovation or advertise at a…[Read more]

No.  However, if person A dies while the holiday house is his PPOR, the holiday house will be exempt under the CGT legislation.

From your posts this evening you are either doing an open book exam or you have an extremely complicated life.  If the latter is your situation you need to simplify your life.

Possibly the person who wants to rent half would rent their half and it would be agreed the oth person could live in the house

Bear in mind that once the block "sold" to your builder mate will not be covered by your PPOR CGT exemption, so your cheap block could cost you money in tax.  You need professional advice on how to set this up most effectively

The general principle is that a will can be changed anytime before the person making the will dies.  Sometimes a person has entered a contract to leave their  estate or part of it in a specific fashion, the courts would normally enforce that contract provided the contract is valid.  In some instances a gift left in a will might not be valid eg a…[Read more]

This is quite normal. There can be sound commercial reasons for doing this eg the potential to keep assets out of the operating business and out of the reach of creditors of the operating business.

Super is probably your best option. Unless you are self-employed you will probably need to salary sacrifice which means you need to plan ahead – no good signing a contract on 29 June and trying to start salary sacrifice then as you won’t have enough salary coming in to make a difference. Also any super contributions your employer makes are…[Read more]

If you moved into it as soon as possible after you settled and did not claim any other property as your PPOR and did not have a partner who had a Ppor then you probably will not have to pay Cgt

Your offset may be contaminated too eg if you invested $55K of the offset money, the ATO would probably not allow a connection with the redraw, but if it did then only 55/125ths of the investment interest would be deductible as the ATO would say you haen't invested borrowings, rather you have invested savings.