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  • Profile photo of jxuerebjxuereb
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    September 18, 2011 - 1:53 am

    Thanks Terry and Jamie. That clears it up for me. We didn’t delve too deep into the scenarios at university beyond the if your repairing something already there or if your extending or adding to a property.

    All our works will be capital improvements and give us a deduction for our tax as depreciation. The other benefit is that we will quickly build equity by carrying out the repairs.

    Thanks for your help and the link to that article.

    Profile photo of jxuerebjxuereb
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    September 17, 2011 - 9:28 am

    Thanks Scott,

    I thought that was the case. At least we can fix it and build equity into the property.

    Cheers

    Profile photo of jxuerebjxuereb
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    January 12, 2009 - 10:19 am

    Cheers Eddie it all makes sense.

    Profile photo of jxuerebjxuereb
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    January 10, 2009 - 9:46 am

    That helps Eddie. Couldn't find an example in my book.

    So the profit and loss account gets closed off the toe beneficiary accounts.

    When the trustee actually pays the distribution in real cash theres a reduction in cash at bank and a reduction in the respective beneficiary accounts.

    Also the beneficiary will need to pay personal income tax on the amount of their distribution.

    Profile photo of jxuerebjxuereb
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    June 19, 2007 - 4:54 am

    I've just some more googling and found: "Undistributed income is taxed in the hands of the trustee at the top marginal tax rate of 45% for the 2006/2007 year, giving a strong incentive to family trusts to fully distribute the trust's income before the end of each financial year." (http://www.cleardocs.com/extra_family_trust.jsp)

    Does this apply to all types of trust structures or only discretionary trusts?

    Profile photo of jxuerebjxuereb
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    October 29, 2004 - 6:23 am

    Can someone clarify my train of thought.

    My parents take out a LOC on their investment property. They then loan me the funds interest free. They have to pay the interest on the LOC they have taken out. The interest therefor is a tax decuction. When I pay back the principle they aren’t generating revenue but only recovering the money they loaned out. Thus not paying tax on what I pay them back?

    If they were to take out a mortgage based on the equity on their investment property the house I want would need to be in their name right?

    Is that the difference between them getting a LOC or a mortgage at this point?

    I also bought steves new book today $1,000,0000 in a year.

    Thanks for all your help so far.
    Jason

    Profile photo of jxuerebjxuereb
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    October 29, 2004 - 6:14 am

    Just found it. Line of credit.

    Profile photo of jxuerebjxuereb
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    October 29, 2004 - 6:08 am

    Thanks for all the replies.

    Can someone clarify what is LOC?

    I’ve tried searching the forums but I get varying search results with ‘location’ instead of just LOC.

    Thanks
    Jason

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