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...
The trustee of a discretionary trust may not need to wait until the end of the financial year for it to distribute the income or corpus of the...
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 429: Step Children and Wills Where step children are in the family care should be taken. Example Homer married Marge when she...
The Pain of Low Fixed Rates Reverting to High Variable Rates Imagine having a $600,000 loan at 2% fixed coming off and reverting to an interest...
Homer has a $1mil home loan with a loan of $500,000 and $500,000 in the offset account. He wants to borrow to buy a $500,000 investment property...
How do you know which loan after a refinance relates to which loan before a refinance? Example Homer refinances 2 loans secured against his...
When a person becomes bankrupt the trustee in bankruptcy comes in and ‘steps in their shoes’ and has the power to sell assets of the bankrupt and...
I have written several tips on spouses selling or transferring property to each other and here is a list of those tips, hopefully in date order:...
Legal Tip 425: Ownership Structuring of Investments in Shares for Children A lot of people want to buy shares for their young children and they...
Tax Tip 517: How to Borrow to pay ‘cash’ expenses It is not possible for you to pay for something and then reimburse yourself with borrowed...
Often where a company or a trust is set up to hold an investment property the rent won’t be enough to meet all the costs incurred. Where this...
There are 2 ways to hold an asset jointly with someone else a) Tenants in Common, or b) Joint Tenants The main difference between the 2...
Negative gearing is when a taxpayer borrows to buy an income producing asset but the costs are more than the income received. It can relate to...
Tax Tip 511: Incorporating a Trust into a Strategy of Debt Recycling when Interest Rates are High Discretionary Trusts are generally a good way...
Many years ago, as rates between PI and IO started to differ, I wrote a tax tip on paying interest only on a PI loan. This gives the benefit of...
Interest can be deductible where the loan is used to produce income. Where a taxpayer borrows to invest in dividend paying shares or an investment...
Debt recycling involves paying down an existing loan and reborrowing to buy income producing assets. The interest on the loan is then deductible...
I have written about this before but it goes over most people’s heads it seems. One loan can be used to pay out another and this can happen even...
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