AM2778 wrote:
From my knowledge, Legal Expenses on Investment Property are not Tax Deductible.Needs to be verified from a Tax Accountant.AM2778

thanks for that. what costs fall under legal expenses. is it stamp suty, registration, is there anything elseSaurin

excellent thanks very much for ur reply. As you already have IP’s here. how is tenancy demand in these area, I am also concern about the locality in these area specially tenants, I m living in eastern suburbs throughout my life…..unemployment rate in Maribyrnong council area is 8.5%. somewhat worries me…….is it possible to get decent…[Read more]

Excellent thanks Dan42.Just To clarify 1) Loan B is also used to pay for my stamp duty for IP, so interest on Loan B can be clamied?3) Depericiation makes sense now. assuming your scenario construction date for property i bought is 1990 so i have 20 yrs left to claim. and as per date it would 2.5%. 2.5% of what? the property value i paid to buy or…[Read more]

Terryw wrote:
say you borrow $95,000 on a $100,000 purchase. LMI would be payable and probably application fees (maybe) and some of registration fees etc. You may end up borrowing $98,000 with $3,000 being extra for the borrowing costs. You would generally be able to claim the interest on the full $98,000.But you could also claim the costs of…[Read more]

Terryw wrote:

saurin_83 wrote:
Hi there,From Loan B I would user 60K as Deposit and 19.5K as other capital costs (stamp duty, morgage registration etc..) If I understand your advise correctly I will be able to claim this in next 5 years in tax (does it mean 79.5/5 = 15.9K each year)? so it means if I earned 80K for next 5 years then only tax…[Read more]

Hi there,thanks all for your response. I have some more queries about tax implications but before that I guess i need to structure my investment correctly.I am planning to buy IP in Melbourne around 300K.So far I understand I will arrange my Loan structure like thisLoan A : PPOR = 258K  ( Existing morgage) linked to Offset 25K account (current mar…[Read more]

Hi Terry,I understand that arranging loans differently would avoid cross collateralising as well as tax  managemnet. If bank allows me to set up different loan for 79.5K (which I am planning to user for capital costs stampduty, morgage registration etc…). Is stamp duty and all other capital costs including deposits still be tax dedcutible? I…[Read more]

Hi Richard Taylor,thanks for you response. I am single earner in house, my wife doesn't work. I earn 86K gross. 258K existing morgage. no credit card. Please tell me if any other infromation you require to give meexact guide.Hi Terry, I think your approach to arrange a Loan is not to do Cross Collateral (am I right?). But I have heard from people…[Read more]

makes much sense. thanks a lot Terryw. Quick question as I am earning 86K a year and single breadwinner in house no kids.  how much I can borrow or bank let me borrow for Loan C. Do bank really allow borrow 90% of value (specially in today's condition where lending is tight). also I recently done valuation of my home and bank advsied it is worth 3…[Read more]

Hi there,thanks heaps for your response.Response to Terryw and Lincoln Haugh, My current income is 86K gross. It was very interesting that if bank allows me to borrow 90% compare to 80% then my borrowing power will change dramatically.Terryw you have advised "Make sure you get this equity as a separate loan, ie don't increase your current loan but…[Read more]