Hi guys n gals
I am in the process of purchasing my new ppor, I want to change the existing ppor to ip. I have used the equity in the first ppor to lever me into the next ppor and just need some guidance with the best way of being able to claim as much as I can.
– Because it was a ppor is there a certain time frame that it has to be an ip before being able to depreciate, claim on interest etc.
– The loan will be cross collateralized (know it's not the best way but will look into that down the track)
– In 6 months I'm looking to set a company for my ip's, is it difficult to change the ownership from my nome to a companies?
thanks in advance for the comments
wade anthony wrote:Hi guys n galsI am in the process of purchasing my new ppor, I want to change the existing ppor to ip. I have used the equity in the first ppor to lever me into the next ppor and just need some guidance with the best way of being able to claim as much as I can.
Convert the loan to interest only. You will be able to claim the portion of the loan that’s securing the investment. Ideally, this loan should have been set up as two splits. Split 1: investment loan; split 2: PPOR deposit/purchasing costs loan. This way, you can easily identify which loan is deductible and which isn’t.
wade anthony wrote:– Because it was a ppor is there a certain time frame that it has to be an ip before being able to depreciate, claim on interest etc.
You can start claiming the day it becomes an IP.
wade anthony wrote:The loan will be cross collateralized (know it's not the best way but will look into that down the track)I’d strongly recommend that you untangle if purchasing more properties in the future.
wade anthony wrote:In 6 months I'm looking to set a company for my ip's, is it difficult to change the ownership from my nome to a companies?thanks in advance for the comments
For what reason? There are significant costs involved – such as CGT on the sale and stamp duty on the purchase by the new entity.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie
The only reason for a company is security, My intention is owning numerous ip's in the future what would you recommend or just have them in mine and partners name.
CheersCompanies do not get the 50% CGT discount for assets held more than 12 months.
What do you mean by 'security' too?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks terry,
are you able to tell me whan interest is claimed as a loss is the rent taken into consideration as income?
Not sure I understand, but
Rent is income and interest is an expense.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks, that's what i meant. When claiming for depreciation; with the house being ex. ppor does this change things at all or once it is an ip?
wade anthony wrote:thanks, that's what i meant. When claiming for depreciation; with the house being ex. ppor does this change things at all or once it is an ip?I dont think so
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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