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...
Generally, interest, and other expenses, may not be deductible if it relates to the purchase or holding of vacant residential land. This is due to...
It has generally been thought that interest incurred while constructing a residential investment property was no longer deductible since the...
People often think a trust is a legal entity, but it is not, it’s just a relationship where someone owns something for someone else. A trust...
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...
I have been collecting private rulings, ATO IDs and any other ATO publication that covers the topic of deductibility of interest when one spouse...
Cash can be gifted without triggering CGT as it is not a CGT asset. See TD 2002/25 Example Homer is a resident taxpayer who has saved up some...
When an Australia Tax resident dies and leaves foreign assets to non tax residents of Australia, there will generally be a CGT event trigger by...
Tax Tip 502: Borrowing to Buy Dividend Paying Shares, Reinvesting Dividends and Selling Some of those Shares Things can get messy where a...
Generally, the trustee of a discretionary trust must resolve to make beneficiaries entitled to the income of the trust and this must be done...
A bucket company is a company that is set up with the sole purpose of receiving income from a discretionary trust. The main benefit of a bucket...
Loans can be converted into gifts but gifts cannot be converted into loans. A gift is the transfer of ownership of an asset from X to Y. X would...
A discretionary trust with negative income means the loss is trapped in the trust and any franking credits attached to share dividends will be...
Tax Tip 498: Will Bucket Companies be Redundant after the Tax Cuts in 2024? Individual tax rates are changing on 1 July 2024 which is just over...
Many borrows like to think they will get a loan approval just because they have equity. But equity in itself does not impact serviceability for...
When one Joint Tenant becomes bankrupt their Joint Tenancy is severed and the other owner will end up owning the property as Tenants in Common in...
If the trustee of a discretionary trust has made a Family Trust Election then the trustee will need to pay Family Trust Distributions Tax if...
There used to be a story about Japanese housing loans being debts that span 3 generations – which I don’t think was ever true. But could it happen...
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...
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