To work out the cost base we need to know the costs for the 5 elements described under Section 110-25 of the ITAA 1997 which are:

1. Money paid or required to be paid for the asset.

2. Incidental costs of acquiring the asset, or costs in relation to the CGT event, for example, stamp duty, legal fees, tax advice, and so on.

3. Non capital costs…[Read more]

Each would pay tax

So the body corporate is selling off part of the common property? Assuming CGT applies – which it may not – then the usual principles would apply. Work out the cost base and the gain minis the cost base is the taxable income. It would be a company so no 50% discount. Would any profits be passed on to the owners?

Strata titling in itself is not a…[Read more]

Normally you wouldn’t want to buy in a company name because of the tax rate. But there can be benefits especially in NSW as a company will get a separate land tax threshold. A company could also retain income so cap the tax at 30%, but this may be better done with a trust and a bucket company.

Keep in mind that franking credits are decreased by…[Read more]

Use excel

If you want to spend money try Property Investment Analysis from somersoft.

If she is the shareholder the company could pay dividends and she could pay the extra tax, if any, and then buy in her own name.

The company could lend her money to buy, but then Div7A would apply and she would need to consider the interest rate and terms carefully.

The company could lend another company money to buy – but then if she lives in…[Read more]

She needs to get legal advice.

The money doesn’t belong to her it belongs to the company so there are various legal and taxation consequences to using it, even if she doesn’t breach corporations law.

Yes, CBA will

Yes they can. But there are various tax consequences including stamp duty and possibly land tax. They will be subject to Australian tax laws as well as the tax laws of their country of residence.

How much higher would you be paying on fixed rates compared to variable?
How many rate rises would it take for you to be ahead?

‘lend’ not ‘borrow’.

Firstmac have been around for years. not a lender that I have ever used in the past 10 years, but they used to be good for servicing. Not sure if this is still the case or not.

1. You would need to transfer title. Which state is the property in?
2. If you want the interest to be deductible, which you probably would, you wife would actually have to purchase part of the property from you and to borrow to do so. Just adding her to the loan will result in losing deductibility. You could have all the loan in her name with you…[Read more]

Probably on the rental property schedule.
Don’t forget that some things will need to be depreciated.

check with your tax agent.

Generally it is not a problem and can result in some good rates, but there is a risk.

Most loan agreements have ‘all moneys’ clauses which mean that any security you have with the bank will be used to secure all debts you owe to that bank, whether now or in the future.

So if you get into trouble you may come down quicker than if you had your…[Read more]

Yes it is possible. Most discretionary trusts would name a person and then say ‘all children, grandchild’ of the above.

Costs incurred before legal ownership can be deductible if you intend to keep the property to rent out. Its like borrowing to pay the deposit on an off the plan property – this interest could be deductible.

A tax agent or lawyer should be able to advise on that.

Get some tax advice on ‘withholding tax’ – otherwise you won’t be able to claim any interest if you do not withhold tax. There may be an exemption for double tax agreement countries though.

And you cannot claim your own labour.

You need receipts! Tax invoices