Some are overly worried about mixing things up and they want to segregate rent and/or dividends by getting them paid into a separate account to...
Some think debt recycling is risky. But they are confusing investing and debt recycling. Investing can be risky – no doubt about that. But if you...
Tax tip 342: Tax Issues with Loan Recycling I mentioned that it is possible to recycle loans – that is keep the loan open when the asset it was...
It is not as simple as just adding a name to a property when transferring between family members. For the interest on the loan to be deductible...
If person A borrows money but person B uses that money to invest then the interest will not be deductible. Person A derives no income from the...
Sometimes spouses jointly borrow but the asset they borrow for is held in the name of one of them rather than both. In these cases it is the...
I had a client wanting to buy a main residence, then next was the investment property. His intention was to make the main residence an investment...
I have gone through these threads but couldn't come to clear conclusion: Tax Tip 290: Tax Deductions When Prepaying Interest What is prepayment...
It is generally ‘use’ to which the borrowed funds are put that determines deductibility of interest on a loan. Some say it is the ‘purpose’ of...
When debt recycling with small amounts it is easy to end up with a mixed loan due to the fact that the minimum loan size being higher than the...
Yesterday I came across someone who did some debt recycling before taking advice. He had inadvertently reduced the amount of tax he could claim...
A trust is not an entity so you cannot contract to sell to the ‘trust’ unless the trustee is a different person from the current owner. An owner...
I think some people inadvertently bugger up the deductions on loans used to buy shares. This might happen because shares are more fungible – they...
If interest on a loan is deductible it is possible to prepay up to 12 months of interest and to claim a deduction in the year that the interest is...
Taking money out of a loan is considered new borrowings for tax purposes. A deposit into a loan is a repayment. This creates a few issues when...
Hi all, I was wondering if there was anyone out there that could give me some input on a dilemma I have around IO vs P&I. My investment loan...
For anyone contemplating a repayment holiday on their loan, you must realise that the lenders will still be charging interest, and this will be...
One common misconception that I see goes something like this: Borrow from a LOC to buy say $100,000 worth of shares that produce income. Claim...
Hi All, My current situation: Me: 31M, $128k + super Defacto Partner (not a Permanent Resident of Aus) : 31F, $55k +super Living in a 2 BR PPOR...
I have stumbled across a new situation concerning deductibility of interest. Son borrowed money from mum and dad who basically let the son use...
Separate names with a comma.
