Forum Replies Created
Hello Amanda
Thank you for sharing that with us. I have just taken advantage of your offer.
Cheers
ElkaHello Emil
Wrapping is not my area of expertise but it seems to me as if your making it unnecessarily complicated for yourself.
If the wrappee decides to get out early ( before the 12 months and/or 10% of the instalment contract price) this just means that he will get what he needs to pay you out from somewhere else (bank?). You just need to be aware that if you are using his FHOG as part of the deposit then you must be prepared to wait for this money until he meets the conditions.
Actually although I don't know Richard (Qlds007) except from the forum I think you could do much worse than use him as your MB. I believe that wrapping is his preferred investing vehicle and he has probably done more wraps than anyone else on the forum.
Hope this helps
ElkaThanks Dom. Sounds great.
Cheers
ElkaHello Joel
It seems to me that to get the best of both worlds and the most flexibility you would take out an IO only loan with a 100% offset account. You would then put the extra $300, or better still, everything you earn, into this account. All your household and other expenses could be paid out of this account but while the "expense money" is there, it saves you interest.That way you are saving yourself interest by "effectively" reducing the loan and at the same time keeping your funds free for further investing. You can always use these saved funds to make a lump sum repayment at the end of your IO only period if you should want to.
The other advantage is that if it's your PPOR that you are currently buying and you turn it into an investment property at any stage you can simply use these saved funds in the offset account to buy your new PPOR. All the interest being charge on your original loan would then be tax deductible.
I think ANZ has a loan for up to 30 years where you can pay IO only for up to 10 years with 100% offset. I don't know if that's the best one but either Simon or Terry certainly would.
Hope this helps
ElkaHello Paul
I'm not actually sure what your question is. From your topic heading I assume (yes, yes I know
) that your asking how much CGT you will be up for and is there any way to minimise it?I don't quite know how you came up with your profit figures but CG is calculated on the sale price minus sales costs (agent fees, bank fees, sales tax if applicable, settling costs etc.,) less
cost base which is made up of original purchase price plus some buying costs (e.g. stamp duty) plus any capital works (renos) minus any depreciation claimed over the years.
This is by no means a complete list but gives you the idea that your accountant will be better able to tell you your real CG for tax purposes. You may want to read up on the subject on the ATO site.
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/026&mfp=001&mnu=5060#001_002_026
As far as minimising your tax is concerned there is nothing much you can do as far as distribution goes as, if you own it 50/50 with your partner, the profit will be distributed in the same way. You then add the profit from the sale to your other income and are just taxed normally on the whole amount. The only thing that may be possible is to reduce the other portion of your taxable income for that year. Again, talk to your accountant.
You might also like to talk to your accountant about discretionary trusts before you buy any more IP's if he is versed in this area otherwise find someone who is.I'm not sure I qualify as either educated or sensible but I hope this helps.
Elka
wilrose wrote:Hi all,can anyone advise where to check on your own history of posts? I would like to find mine to see if there's been any replies but are a bit lost at this present point in time.
Wilrose
Ditto, but love the speed.
Elka
I did. Thank you for sharing it .
Cheers
Elka
) that your asking how much CGT you will be up for and is there any way to minimise it?
