If the main residence is rented out the interest on the loan that relates to its purchase could deductible. That would seem to discourage people...
It is possible to borrow from a related company to buy shares. The borrower could be an individual or a trustee and the loan must meet Div7A...
Tax Tip 523: Can A Related Company Lend 100% of the Purchase Price of a Property? This post covers the tax issues, not the general law issues....
Legal Tip 417: Can a Person Lend a Related Entity Money at 2 different Interest Rates? Sure, a person can lend money to some at different at...
Many people want to help out relatives and do this by transferring existing properties to them for under market value. This might be a noble...
Just because you are married, or in a defacto relationship, doesn’t mean you cannot contract with your spouse. You can, but there is a general...
There is currently a relatively unusual situation where the division 7A benchmark interest rate is lower than the housing loan interest rates. For...
This is a different strategy to a recent one which involved borrowing money from parents and parking in an offset account to save non-deductible...
When borrowing from a related company the repayments back to the company will need to be high to meet the division 7A requirements. Unsecured...
People often borrow money to acquire property or shares. When borrowing to buy property they may borrow the deposit from a related entity and the...
In my loan tips I explained how it can be possible to temporarily borrow from a related company (see Loan Tip: Using a Related Company as a Short...
Sometimes someone might need to borrow money in a hurry before a loan with a bank is actually set up. This might be to pay deposit on a property...
Bank deposits give pretty low interest rates these days yet a lot of people keep large amounts of cash in term deposits. One strategy to...
It is easy to distinguish loans with lenders such as banks as they have account numbers. But what would happen if there was a private lender who...
When borrowing money and onlending that borrowed money to a related entity it is important to make that entity pay its repayments in a way that...
Continuing on from Tax Tip 429: Offset Accounts and Onlending Loan Agreements Tax Tip 429: Offset Accounts and Onlending Loan Agreements The...
Can a minor child borrow from a related company? Yes potentially they can and this could be from a related company that is acting as a bucket...
If someone borrows from a related company it would need to be on terms that comply with Division 7A of the ITAA36, otherwise the whole loan amount...
Back in 2015 I wrote a post entitled “Tax Tip 14: Never ‘Park’ money in a loan” and you can read it at Tax Tip 14: Never ‘Park’ money in a loan...
It is generally difficult to get finance to purchase property overseas if you live and work in Australia. It may be possible for some to borrow in...
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