leoau wrote:
If I refinance the investement, and start claiming the increased interest – will ATO ask me what the hell is happening? As I said it is a positively geared property, and I need to redraw 200K, so, it will be significantly negatively geared one – will ATO start questioning me? I am probably being naive here, but can I claim that…[Read more]

leoau wrote:
Hello,A simple question. I have an investment property, I am in Victoria. The title is under my name, but in reality two of us invested in it. Well, that other person wants to pull out and I have to either refinance the investment property, or redraw my home loan to pay him.  At the moment it is already positively geared. So it…[Read more]

donkey33 wrote:
Hi all,I just want to make sure that I've done my tax correctly because at the end of the last financial year, I purchased a block of land to build a house on and rent out so for Investment purposes.I paid all bank fees and over $30,000 in deposit prior to June 30 and all interest charges up to that date. I know that if it is not…[Read more]

fishngym wrote:
Thanks Eddie.I'm doing some big days at the moment. Hopefully I'll get into it tomorrow and read the sections.Thanks for putting in the extra effort mate.

No worries. I'm probably one of the very few people in this world who think tax is fun!

Best to see an accountant to deal with the structuring options. The most common is probably a unit trust but it can create some tax issues (eg, CGT event E4).  An alternative is a partnership of trusts – it works pretty well and provides flexibility in terms of income tax on annual net rental income and CGT.  However, it may not be the best s…[Read more]

To claim the full interest on the rental property, you should be the sole owner of the property but the loan may be in your name or joint names. If the loan is in joint names, your wife will need to "on-charge" her half of the interest to you (ie, in her tax return, she will claim her half of the interest paid to the bank as a tax deduction and…[Read more]

There may be a way to achieve negative gearing by way of a "gift and loan back" arrangement even if the trust does not have any income.  It involves buying the property in an individual's name but having the trust take a second mortgage over the equity in the property.  You need to talk to an accountant and/or a lawyer to investigate if you c…[Read more]

fishngym wrote:
Thanks for the reply guys.Eddie, would it make any difference that the misses' loan (I'm currently guarantor) is now being changed to both our names on the mortgage via refinancing? Followed by the addition of my name on the title?It sounds like perhaps I've complicated things beyond my level of knowledge.Are there any sections…[Read more]

Qlds007 wrote:
Hi againNo i would switch theP & I loan  to an interest only loan with a 100% offset account and pay as much as you can into the offset account.Once you buy the new PPOR and rent the place out switch the offset account to the new loan as the interest will not be Tax deductible. Also if you redraw the available funds in the loan…[Read more]

There are two issues here – Fringe Benefits Tax (FBT) and GST.If an employer provides accommodation to an employee, a fringe benefit has been provided, which would generally attract FBT.  However, if the accommodation is provided due to the fact that the employee is living away from home or the accommodation is situated in a remote area, FBT…[Read more]

PosEnterprises wrote:
Can someone please advise opionions – If you really need a Trust to do your business – What if you wanted to hold shares and trade shares and hold property in the same Trust.  Is that a good idea?Or would you set up separate Trusts – for Trading for Income and Holding Shares for dividends – and  Trust for just holding p…[Read more]

Qlds007 wrote:
eddie you will be suprised there is a fair number of Company Title blocks over in the New Farm area which i have had a lot to do with.

Really? Are these new or really old blocks? I actually live in New Farm and have owned two units and both are stratas. 

HareluyaLet me know if you are looking for an accountant in Brisbane, rather than the Gold Coast.Eddieeddiec@bigpond.net.au

If the property is in the name of your partner, no, you won't be able to claim the rental expenses, even if you make repayments. For tax law purposes, the repayments will either be taken as a gift from you to your partner or a loan.To ensure that you can claim the rental expenses, including interest, you need to draw down a loan to buy the rental…[Read more]

We don't have much company title schemes up here because strata title schemes are far simpler! In other words, we Queenslanders are far more efficient and modern in the way we deal with things!

In addition to Terry's comments, a put and call option is also handy in "deferring" a capital gains tax  (CGT) event.  Normally, if you sell a property, the contract date (not settlement date) is deemed to be when the property is sold for CGT purposes. If you merely execute a put and call option, you are not deemed to have sold the property u…[Read more]

Hi AndersShoot me an email – I can help.Eddieeddiec@bigpond.net.au

Scott No Mates wrote:
You've lost me on the question…You can only claim the interest if it is an income producing property ie if it has been recently purchased and is vacant, you can't claim an interest expense until it is tenanted – doesn't matter if it is a personal or business asset (unless you have numerous properties and conducting…[Read more]

No Joseph, the trust will need its own ABN and registered for GST. On the other hand, if the corporate trustee doesn't do anything else, it shouldn't be registered for GST.

Generally, these are the remaining interest on the lease/HP that hasn't been expensed.For instance, if you buy a car under a lease, every repayment you make consists of principal and interest components.  The unexpired interest charges are merely the remaining interest over the remaining term of the lease that hasn't been written off yet.