Yack

Yes you can salary sacrifice the interest. Both your’s and your wife’s share if the property is in joint names.

Julia

Inna,

If you can trust each other why not just put your parents side 100% in their name. As your parents are living there they can exempt their side of the property from CGT which can help all of you. If it was 75:25 only 75% their property would be exempt from CGT, could be sad if they needed to sell and move into a Retirement home the tax man…[Read more]

Kramer,
Being close enough to talk to your accountant in person at crucial times is important as that is the best way to communicate. But this may only happen once or twice a year. I have clients all over Australia as most of the time e-mail, post and phone work ok otherwise they like to be able to claim a deduction for a trip to the Sunshine…[Read more]

Ian,
I am a Qld accountant but on Bribie Island Rd. If you send me your e-mail address I will send you my free rental property booklet.

julia@bantacs.com.au

Yack,
Sorry on re reading my reply I can see that the start is confusing. What I am saying in the first paragraph is the point I am making does not apply to properties only held in your name so I am only talking about a strategy you should use when you are in a position to purchase a rental property in joint names.

You are quiet right to…[Read more]

KJK,

If you send me your e-mail address I will send you my free e-mail booklet.

julia@bantacs.com.au

Yack,

This strategy will not work for the properties that you already own in your name only, but can I suggest that you buy your next property in joint names with your wife. If the property is negatively geared you can salary sacrfice to negatively gear it even further in your name and possitively gear it in on your wife’s side. If it is…[Read more]

Fullout,

A hybrid trust is a combination of unit and discretionary trust. These should only be used in very particular situations. They are not the solution for every circumstance. Personally I don’t recommend using them at all unless you have an ATO ruling. One of the main purposes of these arrangements is to get the negative gearing…[Read more]

Kramer,

I am a QLD accountant about an hour north of you on Bribie Island Road. I have sent an article I have written on business structures to your e-mail address but please don’t take that as your only option. It all depends on your particular circumstances. There are also benefits in hold the properties in just joint names and a lot less…[Read more]

Dave,

Sorry trouble with our e-mails because of our new website going on line. Will send you the booklet when I can send out again. In the meantime our site is http://www.bantacs.com.au if you want to look for any other booklets etc. The site is still in development but you should be able to access the booklets.

Julia

Nazza,

Crunching the numbers for each possible outcome will give you an idea of which is the most likely. It will involve some guess work but after working through a few scenarios you may see a trend. A lot depends on your holding time and how long it will be negatively geared.
There is a way to have a resonable each way bet which is extremely…[Read more]

Tools,

Any repayments are pro rataed unless the funds are from the sale of one of the investments you borrowed for. ATO ruling TR2000/2

I have a free booklet on claimable loans. If you are interested send me your e-mail address.

julia@bantacs.com.au

Steve,

Whether the interest is deductible is determined by what the money borrowed was used to buy and this needs to be traced through any refinancing so the interest on the portion of a loan that was used to buy or refinance a loan that was used to buy a property that is now income producing will be deductible. The trouble with a LOC is the way…[Read more]

Mick,

You must transfer it at market value

julia@bantacs.com.au

Elves,

Aw give me a break, I’m passionate about tax.

julia@bantacs.com.au

Borrow from the country offering you the lowest interest rates. Usually it is the country where the property is that has the taxing rights but:

In ID2002/764 the ATO clearly states that, from 1st July, 2001 Section 160AFD allows the interest, borrowing costs etc. on an overseas rental property to be offset against Australian income to the extent…[Read more]

The income is not taxable in Australia because you are OS for more than 90 days but it must be included in your Australian tax return as exempt foriegn income as it will detirmine the tax threshold your Australian income will be pushed into.

julia@bantacs.com.au

Chan,

Qld.

julia@bantacs.com.au

Actube,

No rollover relief on investment properties in Australia. The only rollover relief is available to active assets of a business and it specifically excludes assets that have been used to produce rental income section 152-40(4)(e).

julia@bantacs.com.au

Karan,

No rollover relief on investment properties in Australia. The only rollover relief is available to active assets of a business and it specifically excludes assets that have been used to produce rental income section 152-40(4)(e).

julia@bantacs.com.au