No, as you will still qualify for the main residence exemption, for up to 6 years.

Yes, the 6 year rule applies in this situation. Basically, you can only have one property that qualifies for CGT exemption at a time. As you will be renting, not buying another property, you would qualify for CGT exemption.

Here is a link to the taxpayer alert relating to hybrid trusts. If you currently have a hybrid trust arrangement, you can apply to the ATO for a private ruling.The Tax Office considers that the arrangement outlined above may give rise to taxation issues that include: whether the general anti-avoidance provisions in Part IVA of the ITAA 1936 may…[Read more]

You're assumptions are pretty much correct, but remember to deduct the selling fees from the amount you received for your share of the property. YOu would also need to justify your valuation of the property, at the time it ceased to be your PPOR.Also, you say that family were living in the property. Were you receiving any rent?  If not, you can…[Read more]

Did you buy another PPOR when you moved out, or did you rent? If you subsequently bought a PPOR, when did you buy?

maust wrote:
Hi All,I run a small business and recently discontinued an expensive commercial lease to run the small business from home but not sure what my leasing options and implications are. I have dedicated a room to running the business and do not use this room for any residential purposes. Can anyone assist with the following quesions and…[Read more]

When we bought our house, we signed the contract subject to building / pest insepctions, and subject to finance. We got the inspections done straight after signing the contract, so if we did find anything nasty we could either re-negotiate, or if the vendor didn't want to play ball, we could have pulled out during the cooling of period.

not_so_lucky wrote:
If I use the holiday house as equity and borrow the money for the house I'm about to start building, will I then be eligible for the interest deductions? If I rent the place obviously? The Trust stuff just seems to complex

No, as the test for deductibility of interest is, 'what are the funds used for?'. As, in this case,…[Read more]

Now I'm with you. I took the outgoings as income, as it was right next to the rent. (Outgoings paid to you, not by you) I also calculated the Cash on Cash incorrectly. It must be the end of a busy day!

I don't think you've calculated the amounts correctly. I get:Cashflow (P+I):  $335 p.m.       Interest Only:    $373 p.m.Cash on Cash     4.5%                      5%How did you get $832 for Interest only cashflow?

Linar wrote:
Hi WJI think that you are correct.  If it was an IP and you transfer into your joint names then you would have to pay CGT on the market value of the place at the time of the transfer.  And it would have to become the PPOR for you and your spouse.I don't know that there is any real benefit though.  If you owned an IP in your own na…[Read more]

In answer to your first question, the interest portion will be tax deductible while it is being rented out, along with council rates, water rates etc.

WJ Hooker wrote:
Linar,          Thus, once you have finished claiming your IP deductions over time and payed off your loan ( all in your name ) since you are the one with all the income and wife without. You can then transfer half to your wifes name without paying CGT.          Then get another loan for an IP in your name ,again , and do t…[Read more]

SHales wrote:
I'd like to think that they wouldn't be spending billions in cash hand outs.  What a crock.  What about all the massive infrastructure improvements this country needs to go forward, and remain globally competitive.  Our road networks and health systems are a mess, I'm guessing that more light rail would be needed in the cities, we…[Read more]

NOS1 wrote:
Thanks for the feedback, just another query. If the place is valued at 300k can I sell half to my wife for 150k , and she claim the 150k as a deduction. As well as i claiming the 70k that I already owe.We are currently renting ,but have a property with the tenants in it. This will be our PPOR in approx 10 months when the tenants…[Read more]

MortgagePlus wrote:
Either way, I am not wasting any more time on you (Badger) as this post has just become rational feedback countered by personal attacks.

Tim, your first line was: Badger, you are obviously a pleb, and have likley not held a job any higher than low/low-middle management. How is that 'rational feedback'?

Unfortunately you are going to have to pay, one way or another. What you have to work out is if the tax savings into the future outweigh the payment of capital gains tax and stamp duty now. You can't have your cake and eat it too.

aaronbyerlee wrote:
By far the best information on property options is this DVD. It free and provides a great insight. Mark Rolton is the best at Property Options in Australia. He is the best Mentor I have seen. Very Genuine. He will put up all costs for you when you do a deal (usually around 10% of property costs for DA approval etc) You then…[Read more]

No problem at all. Yes, I'm an accountant based in Adelaide, and we have clients all over Australia. When you're ready to set up a trust, send me a PM, and we'll go from there. Dan

Sorry, I should have said agreement, rather than arrangement. The company would not need to gift back it's income, as you control it anyway, so the company is not going to sue the trustee to get its money. The gift back from other beneficiaries would be to you, or you partner, or whoever you choose, not the trust. You've got it. The company is…[Read more]