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  • Profile photo of I.PropI.Prop
    Participant
    @i-prop
    Join Date: 2011
    Post Count: 3
    March 13, 2011 - 7:51 am

    I've just realised that since I am purchasing my IP overseas (US) then I may be liable for capital gains on the sale of the property won't it?

    I have researched that there are no capital gains in the state I am purchasing. However, since I am claiming deductions from the unsecuritized loan I took in Australia, then surely any profits from my US property will also be assessable?

    And hence since Australia has capital gains tax, does that mean that by ATO's standards, I will also have CGT on the sale of my US investment property (regardless of duration held)?

    I'm also still a little unclear as to whether I can deduct the interest component of my credit card if I choose to draw down its credit and also use it to purchase my investment property?
    I currently use the c/card for personal purposes only and pay down in full monthly.

    Any kind souls out there would like to offer ideas/thoughts please?

    Thanks v. much.

    Profile photo of I.PropI.Prop
    Participant
    @i-prop
    Join Date: 2011
    Post Count: 3
    February 27, 2011 - 11:50 am

    Thanks for replying duckster. Yes I should have mentioned that the credit card is paid down to zero monthly. And if the credit available is used for part purchase of the IP, then I will no longer use the card for personal expenses.

    If I were to do it then, can the interest be tax deductible?

    With regards to hybrid trusts, I have asked around and a few banks are already saying they are not willing to lend on a hybrid trust.
    However, those were very preliminary meetings I had with the banks. Do you know of banks who have successfully loaned to a hybrid trust?

    As always, any help would be fantastic.

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