There are really 2 occasions when a private binding ruling (or PBR) should be applied for from the ATO, and they are: a) When the law is...
To be able to claim interest against income, there needs to be an expectation of income. Some shares do not pay dividends and there is no...
We have been putting extra money (on top of required monthly repayments) directly into the PPOR loan account. We decided to purchase an investment...
Deductibility of interest is a tricky topic. Interest is basically deductible if someone borrows to invest in something that is expected to pay...
Hi All, I have an Investment property for which I am comfortably borrowed against at an LVR of 60%. I am renting at the moment. I am in need of...
When borrowing against existing property and getting extra ‘cash out’ there is a high chance that the lender will put that money into the wrong...
When you invest before you have bought a main residence the issue is that you will have less money for the future main residence, and this means...
I have a property in QLD that got flooded due to a leakage in December. Tenants broke the lease and vacated. I live in NSW and have been pushing...
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...
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