IP With No Debt

Discussion in 'Accounting & Tax' started by bsteve, 2nd Sep, 2016.

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  1. bsteve

    bsteve Member

    Joined:
    13th Nov, 2015
    Posts:
    9
    Location:
    Vic
    A rental property with no debt.
    Rental income goes into a savings account and expenses are paid by various methods: credit card, savings account etc.
    Earnings distributed to title holder members.

    Is there a better set up from tax, legal perspective?
    Thanks
     
    bsteve, 2nd Sep, 2016
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,245
    Location:
    Sydney or NSW or Australia
    Refer to @Terry_w debt recycling tips.

    Consider a LOC and using the income to pay non-deductible debt if you're comfortable with that.
     
    Scott No Mates, 2nd Sep, 2016
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
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    Australia wide
    It depends - there may be no debt to recycle!
     
    Terry_w, 2nd Sep, 2016
    #3