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Hi, yes, you could buy the property for less than market value. However the arms-length rule will apply and capital gains tax will be based on the market value and not the sale price. If you were to use this property as an investment then yes, the interest on funds borrowed to purchase the...

Hi, yes, if you have kept records for the carpets as well as that air conditioner per the previous post then you could claim depreciation on the remaining value on both. A property that is only 8 years old should also have significant value to be claimed over the next 32 years. I would...

Hi, how can a property be repaired when you have not owned it for long enough for any damage to occur? With this in mind any initial works (including what you refer to as 'repairs') done to the property will need to be written off over time at the applicable rates. Interest incurred on...

Hi, generally speaking the portion of the loan relating to what will become your private main residence will not be deductible once such change in use occurs. An idea. This may also apply to RumpledElf. Upon clearance of subdivision the original loan for the property in question should be...

Hi, in relation to data matching, Other states have similar guidelines for public viewing. Also note that the legislation also provides for the Commissioner to demand certain information, statutory declarations and sworn oaths from a person whom they suspect to have used the grant illegally...

Hi, yes, both landlords insurance and general insurance for the property should be deductible. If the property was available and advertised for rent in March 2009 then this is the time that the tax office will consider it to become a rental property. So this is also the date from which you...

Hi, just to clarify, you cannot claim the same expenses again but can carry forward a loss and claim such loss next time instead. So next year you won't actually record those expenses again but instead just claim one total amount that matches your negative taxable income from the year before...

Hi, there are some trust deeds which exclude beneficiaries if they would otherwise be eligible to receive means-tested Centrelink benefits to ensure that those relatives nearing retirement are not negatively affected by the younger and wealthier family member. This could prove useful in such a...

Hi, the possible concern with the law of perpetuities would be if the vesting date of the property trust is later than the vesting date of the service trust that is distributing to it. Just a thought to consider. For the record I would also agree that if the property is leased to a related...

Hi, just wondering, how cash flow positive properties are not considered "run of the mill" for property investors? Even if some of these investment are initially negatively geared, what would you suggest if such investments were to become become positively geared in later years?

Hi, yes, you can carry forward losses if your overall income was negative. However if your overall income was below the tax-free threshold but still positive then you will not be able to use those deductions again in a subsequent year.

Hi, is she talking then about using a unit or hybrid trust to negatively gear her own home or redirecting the other trust distribution to the new trust? If the former, she will need to be careful not to fall foul of this ruling. If the latter, she will need to be careful not to fall foul...

Hi, I was referring to what may be known as the refinancing principle. This means that if a new debt is obtained in order to pay out an existing debt, then the new debt will be taken to have the same purpose as the previous one. Therefore if the (potential or actual) interest on the existing...

Hi, yes, this is a valuable 2 cents. Trusts may not always be a need for small investors but they may be useful in some circumstances. As is always the case, an investor should speak with both their accountant and their lawyer before making a decision on structuring instead of taking advice from...

Hi, congratulations on your upcoming retirement. I agree that having a plan is very important and planning it out carefully should allow the best results. Usually I would plan for much longer than 2-3 years but I presume that your accountant knows your situation better than the forum does so...

Hi, yes, this would be correct. Also if the trust owes you (personally) money then it could use other borrowed funds (such as the LOC) to repay that debt. Then the interest on the LOC may also be deductible.

Hi, I am making a few assumptions here. I am assuming that the property is not held by a trust or company. I am also assuming that either you went by yourself or if you took a partner or children then they are also on title. Given that the trip was largely private, the tax office will deem...

Hi, yes, other structures can be used to solve the problem. This also works when using trust funds for a personally owned investment property, for example. However it appears Belleran has the property, the savings account and the LOC all in the trust name. Per previous posts, the principle of...

Hi, you can claim an expense if it is incurred in the process of earning income. You would need to have evidence of having incurred the expense and be able to show that it is reasonable to have done so. Another common example is paying a low-income spouse a small allowance for their efforts...

Hi, so would I. The principal of mutuality prevents this. You cannot owe money to yourself as it is a zero sum. However using other structures may allow for some creativity as Ozperp suggested.