I think you probably couldn’t claim the interest until the property is sold.

And don’t forget the margin scheme may apply.

1. GST would generally be calcuated on the sale price of the property while it is new.
There may GST inputs you can claim.

2. Depends on the circumstances. If your intention is to build and sell then the interest would be a capital expense.

totallu different

When you pay money into a loan you are paying down that loan. When you redraw money you are borrowing it.
Tax deductibility depends on what the borrowed money is used for.

So if you temporarily pay money into an investment loan when you redraw that money the interest on that portion of the loan will only be deductible if the…[Read more]

Transfer to a trustee or a declaration of trust with no transfer will result in both stamp duty and is a CGT event. There are also asset protection consequences which will vary depending how you do it.

In short you would have the following costs:
legal advice
conveyancing
loan exit fees and mortgage discharge
trust set up
stamp duty
CGT
new loan…[Read more]

What is most common is not always the best option.

Tenants in common equal shares
Tenants in common unequal
Joint tenants

these are the most common. But you may wish to consider a few other options such as single ownership with loans between yourselves as well as the banks.

eg. $100,000 property in your name.
$80,000 loan from ANZ
$20,000 loan…[Read more]

Yes there will be tax issues, a few in fact, if you borrow money and deposit that money into the offset account. Don’t do it without tax advice.

Stamp duty will be at market value regardless so will CGT. There are various legal issues with paying undermarket value so it may be worthwhile paying market value and for them to make a gift back to you if they choose. This will have many advantages if you were to later rent the property out.

If you do choose to pay a value before market most…[Read more]

Basically a property is considered ‘new’ for 5 years and GST is chargeable on the first sale of new property.

No its not deductible at all as it is a capital expense (can be used to reduce CGT).

Serviceability will be increased for the 4 people as a group, but if one of the persons wants to buy something on their own separately then they will be assessed on 1/4 of the rent, but on the full debt. THis will hurt their serviceability.

Also all 4 going separate may result in a similar borrowing capacity overall compared to 4 together,…[Read more]

Yes, many of them will.

If you were a resident of Australia you may have committed an offence by not declaring your UK income. Maybe you mean your Australian income was less than the taxable threshold?

I don’t know if you need to declare the loss or not but wouldn’t it be good to have loss which could be carried forward to offset future gains?

How are you proposing to own the properties? Sounds like 4 names and this may need a rethink for a few reasons such as:
– joint and several liability = risk
– effect on borrowing capacity
– land tax
etc

It may work out better to buy 4 properties in one name each rather than 4 in 4 names.

Investing in property is not generally considered a business.

Trust assets cannot be passed on via a person’s will. Where the trust is a discretionary trust the appointor position can be passed on (sometimes in a will, but better outside) and the trustee company shares could be passed on, but not the property of the trust. Where the trust is a unit trust and you own the units then the units can be left via…[Read more]

Best to speak to a lawyer about asset protection. Accountants don’t know about the laws of ‘equity’

The reason to have a company as trustee is because a trustee is personally liable for the debts of the trust. a trust is not a separate entity but a relationship with the ownership of trust assets being in the name of the trustee. So if the trustee…[Read more]

Builders are generally conducting a business of building and selling. They would usually register for GST and claim CGT inputs along the way and then charge GST on the sale.

But this doesn’t mean it will apply to your situation. You may not be conducting an enterprise. you really do need to get expert advice on this.

You need your crystal ball – if you think it won’t grow by at least what it is costing you then it may be work selling.
Even if you think it will grown more you have to weigh up the opportunity cost of it tying up capital and/or preventing you investing elsewhere.

‘stamping’ is only done for revenue purposes. There is duty on mortgages in some states such as NSW for non natural person. Trust deeds in NSW and VIC are also stamped with duty payable.

For a deed there is no stamping needed unless the duties act imposes it. No JP witness required either, just an adult who is not party to the deed. Same with…[Read more]

You should split the loan into 3. Original purpose loan, and one new loan for use of each property.
Not due to APRA rules but because of tax law. Interest is deductible based on purpose and use of the borrowed funds, therefore you need to claim interest against the property the borrowings relate to. This is best done with separate loans. There…[Read more]