Ideally you would live in every property you own initially to establish them as the main residence. Then you have a choice of which to eventually choose to be CGT. But you only have to make this choice on the sale of the first one. You would ideally reconisder each property after 5.5years since you moved out.

Here is a link to the legislation
http://www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/itaa1997240/s118.145.html

6 month rule only applies when buying replacement home before selling old home.

Also keep in mind no main residence cgt exemption when held on revenue account.

I think the question ‘how many people could do this’ is irrelevant. The question you should be asking is ‘could I do this’?

I think the question ‘how many people could do this’ is irrelevant. The question you should be asking if ‘could I do this’?

Yes still possible. 6 year rule. S118-145iaa97.

But if second house sold it would be partially subject to cgt

Asset protection is more of a concern if the trust is trading – negligence and contractual risks. You also get this when running a business of property too, but less so than if selling widgets etc

Nope
Nope

This expense doesn’t relate to current income.

If the trustee is conducting a business it could be deductible to some extent.

It is not very straightforward because GST may or may not apply, or apply in part. If a development CGT won’t apply at all, but it will be income tax on the profits (not capital gains).

Anti money laundering legislation breached? Potentially serious crime.

1. It depends
2. Yes
3. Yes

No. Buyer beware.

Income tax than still apply to the profits. The main residence exemption can only apply where the property is held on capital account. Where you are buying with the intention of selling for a profit this will be on revenue account and it will be taxed as income without the 50% CGT discount or the main residence exemption if you live in it.

Who told you that? They are confusing the 50% CGT discount with the main residence exemption.

The sale of the main residence could still be exempt from CGT if sold within 12 months.

Just send an email to the agent.

It seems the property has been sold for $250,000 more than purchased, but there are other costs that can be used to reduce the CGT – stamp duty, legals, agents fees etc. Let’s say this comes to $50k, that would make a gain of $200,000.

you could then apply the 50% CGT discount so this becomes $100,000. This is added to ‘your’ other income. So if…[Read more]

Lol, yes there are about 10 people on the waiting list atm. If interested could you please sign up here http://terryw.com.au/waiting-list/

Only tax agents or lawyers can provide tax advice. Redwood is a tax agent I believe.

Only tax agents or lawyers can provide tax advice. Redwood is a tax agent I believe.

1. Make sure you are really maxed out.

2. Do what you can to improve serviceability.

3. Related party loan.

4. Transfer small amount ownership to someone who will help with servicing.