Ben

If you have lived in A since acquistion it could be exempt from CGT. If you move into B it will always be subject to CGT but based on the period it was rented out as a % of the time held.

If at tax time you have incurred an expense you can claim it agains capital gains or income but nnot both,
If it was a business then there would be no CGT anyway.

No Australian institution would lend secured by overseas property because of the different jurisdictions – enforcement and taking possession of the property etc would all be under American law and therefore complex and costly.

Trusts and structures are legal matters so you need legal advice. Accountants can only give the tax advice part.

There is a well known structuring lawyer in Tas called Peter Worrall – not sure if spelling correct but a google should assist.

Yes it is possible.

Colin Rice wrote:

<div class=”d4p-bbt-quote-title”>CanberraClaire wrote:</div>
I guess at the end of the day, they’re passing their opinion off as fact. Dangerous, yes. Outside their scope, certainly.
Couldn’t agree with you more about who to listen to, but so many accountants are narrowly trained that unless they’re heavily investing themselves, I wouldn’t go near them for structuring advice either!

I work with accountants that are property investors and I know more about structuring finance than they do yet legally limited on how deep the advice gets never mind the average bean counter who often gives the exact opposite advice that is required.

And when I say “run this past your accountant before proceeding” I cringe with tongue in cheek.

At least they can blame the accountant when things go wrong. however I think with most things are going wrong, but they don’t realise it and won’t realise it until they change accountants or get audited.
And went I say blame the accountant I mean the person signing the tax return is still reponsible but they may be able to sue the accountant (like Aussie John – suing tax lawyers) if they give wrong advice which results is the tax payer losing money

Very messy.

If one party stops paying the other joint borrowers will have to take up the slack or they could lose the lot.

Either joint owner could apply to the Supreme Court to appoint a trustee to take over and sell and split the proceeds. This is likely to cost $20k plus if all goes smoothly.

Good summary by Catalyst – let this be lesson for the people out there.

1. They rent will be taxable as per normal
2. You move on. Changing ownership would be costly.
3. depends
4. nil for a trust. ASIC fee for a company $243 per year.

Not true.

In that case both properties could be exempt if you sell the existing one within 6 months of acquiring the new one – seek tax advice as you need to plan.