Calvin

No. Just that the laws are different over there, and since most people are aussie here (?) they may not have realised it was from over there

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Hi Gross

I am not an accountant, but would think the following:

1) A director does not own a company, just runs it, so there should be no CGT or stamp duty implications

2) Shouldn’t matter where the assets are located. If the company were to sell a house for a profit, then tax must be paid. Location of house would be irrelevant

3) If you sell a company, then you would be selling the shares in the company. If you sell the shares for more than you purchased them, then you would pay CGT.

4) Company regulation is through commonwealth legislation, so the location of the directors should not be an issue.

There may be issues with stamp duty etc, as this is a state issue. May accountant has said to form companies in VIC (less stamp duty) and trusts in QLD (no stamp duty).

I am also not sure what would happen if you purchased shares in a company for $1, and the company then purchased property, the property has risen in value, and then the shares are sold in the company. How would CGT be worked out in this situation?

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Carl

ATO will look at the purpose the funds were used. Title in not relevant in this situation.

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Soem lenders that will take negative gearling into account are:
Bankwest
St George
ANZ

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Further to Simon’s suggestion, you could also sell your home to a trust, the trust could borrow to buy from you creating a large deductible mortgage.

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Tony

Not quiet sure what you mean, but have a look at this post:
https://www.propertyinvesting.com/forum/topic/20340.html

BTW, a friend in the ATO once said apply for a private ruling is like waving a red flag at a bull.

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Bank calculators are rather complex, but some work it out similar to this:
Net Salary
Plus 80% rent
for income, and this must be greater than:
Outgoings – total debt payments (sometimes taken as if 8.25% PI loans)
plus, 3% credit card limit
plus any rent payable
plus a living allowance (more if couple, kids etc).

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I don’t think that is true. Better talk to a good accountant,

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You would technically be self employed and would have to show tax returns for the last 2 years. I spoke to ANZ and St george this week about this topic and both indicated they would look at someone after 12 months.

Homeside appear to be more lenient and will look at someone straight away if they are in the same industry as before and can prove they were earning similar money to before they were a contractor.

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