Adam,The parents in law would be up for CGT whether they are retired or not. They wouild pay less CGT in retirement (assuming they would be earning less income in retirement), but they would still pay SOME CGT. (I am assuming the property is not held in an SMSF)

propertyboy wrote:
^ I intend to rent my unit out and go rent an apartment in the city so I can be closer to work so trying to make two properties PPOR is not the problem, I just want this one to be PPOR.

Where does it say you have to live in it first straight after settlement?

So if you rent it out first it automatically become an Investment…[Read more]

propertyboy wrote:
^ I intend to rent my unit out and go rent an apartment in the city so I can be closer to work so trying to make two properties PPOR is not the problem, I just want this one to be PPOR.

Where does it say you have to live in it first straight after settlement?

So if you rent it out first it automatically become an Investment…[Read more]

propertyboy wrote:
^ I intend to rent my unit out and go rent an apartment in the city so I can be closer to work so trying to make two properties PPOR is not the problem, I just want this one to be PPOR.Where does it say you have to live in it first straight after settlement?So if you rent it out first it automatically become an Investment…[Read more]

propertyboy wrote:
Does the 6 year income producing rule still apply if you rent it out straight after settlement? Or do you have to live in it first? then you get 6 year period? If so how long is this period? ATO site does not clarify this.

First question – no, you must live in the unit first, to get access to the 6 year CGT free rule.There is…[Read more]

Banker wrote:
Your right Richard however a few of them have higher rates. If you meet the existing client critera you can get wealth or mav package from 6.16% or the 3 rate saver / economiser.

We were told this was only for a PPOR. Investment loans are limited to 90% with CBA.

keiko wrote:
That would be stupid to leave it vacant when you can collect an income from it, plus you could easily get a couple of valuations done and keep the highest valuation and if you sell in a couple of years then pull out that valuation when someone comes knocking and then there will only be tax between that valuation and the sale price,…[Read more]

carlin wrote:
Thanks for tips. Getting advice is where I get stuck…..I don't know who I should talk to for financial advice on this one. Centrelink won't give advice, understandably. Is there a particular kind of financial advisor I should see or do I just lookup the yellow pages, shut my eyes and poke a pin in to choose one??? We're in…[Read more]

ryan mclean wrote:
This is where I get confused. Because say you make $10,000 in passive income through cash flow (after expenses), but you have $10,000 of depreciation you can claim. The depreciation is a phantom loss as it doesn't actually cost you anything at the time. This means you will still have $10,000 in your bank account that you can't…[Read more]

ryan mclean wrote:
Be careful buying negative cash flow property through a trust. My accountants advised me against it. You can't pass losses through a trust. One of the major benefits of negative gearing is the tax benefit you get (if you are in a high tax bracket). If you invest with a trust you will forfeit those tax benefits. As far as I am…[Read more]

Hi Tony,Basically, the difference is the type of trust.You CAN claim the losses from investing in a Unit Trust, but not a Discretionary Trust. With a unit trust, you basically borrow money to buy the units in the unit trust. As you own units, and will (one day) get a share of income from the trust, you can deduct the interest expense in your own…[Read more]

The trust can not be the legal owner, because the trust is not a legal entity. As long as the bank account says 'XYZ Pty Ltd as trustee for ABC Trust', that will be fine. The company is the legal owner, but is doing so as trustee for the trust, rather than for itself.

Hi Vivian,The trust is not a legal entity, the trustee is. As the trustee is the company, the bank account should be in the name of XYZ Pty Ltd as trustee for ABC Trust. So that part looks ok to me, as long as it has the name of the trust on the account.I'm not sure what you mean by company and trust 'profile', I might leave that one for one of…[Read more]

I thought I read one of your posts from earler today and it was signed Leigh, although I can't find the post now. Apologies if I have got this wrong. I think we are on the same path, I may have handled it a bit differently, that's all. Enjoy the swim….Cheers,Dan

Life is full of assumptions?? My point was that you can't be sure of your position (less risky than WJ's) without at least some other information. Saying P&I is more risky than IO is neither true or untrue, without the other information. As a financial planner, surely you wouldn't give advice based on assumptions about your clients, you'd gather…[Read more]

Leigh, there are a lot of assumptions in your argument. You assume M&D 1 have no other money out away to cover the loan, and you assume M&D 2 are religiously putting money into their offset account. You also assume that your situation has less risk than WJ, when you don't know the first thing about his(or her) circumstances. What is WJ's LVR? How…[Read more]

PaulTextor wrote:

Talismans wrote:
Can the interest payment be deducted from the capital gain as well if I sell the share less than a year at a profit?

 No. Interest can only be deducted from your income. Only capital losses can offset capital gains.CheersPaul

This is not correct. Revenue losses can offset capital gains.

Hi DianeAn asset transferred as a result of marriage breakdown can be 'rolled-over' for CGT purposes, until the asset is ultimately sold. This rollover can only be accessed if there is a family court order, or a binding financial agreement between yourself and your ex-spouse. But bear in mind, it is not an exemption, but a rollover. It means…[Read more]

dannyde wrote:
That's the way i see it. As we are currently renting, both of our PPOR are being rented out to others, however if we sell these PPOR within 6 years of moving out, it should CGT free!

Danny, from further reading, the ATO state that couples can only have one PPOR at a time, so, even though you are renting at the moment, only one of…[Read more]

silverx wrote:
7 years as maximum? So let's say I live in a property for 10 years, rent it out for 5 years, the cgt exemption only applies to 7 years? Making 8 years are taxable instead of 5 years?

No. If you have no other PPOR during the time your proeprty was rented (ie, you were renting yourself) you would pay no CGT.Your property can be…[Read more]