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  1. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    That is okay Gordon, I understand the confusion and the potential contradiction, that is why so many years ago I sat down and wrote the Interest on Interest post. I have my coffee on this lazy Sunday morning so will try and communicate my thoughts to you: The Tax Office has clarified via the...
  2. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    Dear Gordon I understand Part IVA very well as a Chartered Accountant. As I said, my philosophy is to work completely with the constructs of the tax law as an accountant, investor and owner of my own businesses. Essentially any expense you incur to produce income is deductible. Any...
  3. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    Hiya Rixter Horses for courses, it is definately not good practice to put your rents into a PPOR, an offset for sure for ultimate flexibility. Best Wishes Corsa
  4. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    In reference to TD 2008/27 and Hart's case, Hart's case proceeded to the High court because the Court found Part IVA of the IAA 1936 applicable - in that the predominate purpose of the set-up/arrangment/scheme was to avoid tax (as opposed to expenses incurred to generate income). That is why...
  5. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    No problem at all Gordon. The answer is really straightforward, interest is deductible to the extent that it is incurred in gaining or producing assessable income or in carrying on a business for that purose and is not of a capital nature ITAA97 s 8-1. Therefore, interest that is borrowed...
  6. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    Dear All i have had a private request to outline a strategy for those who have only 100% deductible debt and 0% non-deductible debt. Essentially the strategy remains the same. Depending on your life style requirements of course (ie cost of living, holidays, etc), income and status of your...
  7. Corsa

    How do I get the equity out of my investment properties to reduce non deductable debt

    Dear Krak bene313 has got the strategy in one. The planned actions you could take include: have your IP revalued and borrow the maximum possible that they will lend you (avoid cross collatorisation) - assume redraw loan of $140k have your PPOR revalued and borrow what you can out of...
  8. Corsa

    RP Data Licenses available for SA Property Sales

    Dear All Just a quick note to anyone who might be interested in a RP Data property licence for all South Australian data. We have had 2 licences recently become available for others. The license is $590 per annum and we can give you up to 3 logons for your group. If you need RP Data...
  9. Corsa

    Way too conservative!

    Dear Xenia I am struggling a little with your post. How many accountants are you basing this view on? We have known each other for a long time and I think you are great. As you know, I am an Accountant practising in Adelaide - do you think I am like that? I think that the nerdy...
  10. Corsa

    Advice on tax deductability

    Dear James If you obtain a loan through St George or another bank and you cite the reason for the borrowings as being "personal" then this basically means the bank will assess your ability to repay the loan (the Debt Servicability Ratio) and your LVR (Loan Valuation Ratio). They will use...
  11. Corsa

    Repair or replacement

    I had another close look and Depreciator is correct.
  12. Corsa

    Simple Structures Question - Just Starting Out

    Dear Prandsa Josko is correct a Hybrid Discretionary Trust (HDT) is beneficial for these types of structures particularly if you have different parties investing in differing proportions who may be coming in and out of each deal. Banks that I understand are lending to a HDT are CBA and...
  13. Corsa

    Repair or replacement

    Dear Investemptruss/Team Francesco is correct, given the expense is $300 or below then they will be immediately deductible in the tax year incurred. Best Wishes Corsa
  14. Corsa

    software for professionals

    Hi Chris How are you going? For property/business/personal management for 1 property to 20 properties to 100 properties PLUS a personal situation, then I would recommend using a financial package like Quicken or MYOB. Having used both Quicken is better for Inter-Entity accounting...
  15. Corsa

    mount barker, naire SA , anyone

    Dear Team/MJD The Adelaide Hills is an amazing place in Adelaide - and a part of Adelaide that I would definately recommend investors look in. Typical suburbs in this area and associated performance for median house price, growth in past 12months and growth over past 10 years for popular...
  16. Corsa

    Capitalising interest - draft ruling

    I apologise in advance if Julia is a contributer on Somersoft, however after reading Julia's newsflash it is confusing as it is not written particularly well to explain the key concepts it is trying to get across. In conjunction with my reading of the Tax Ruling & relevant tax laws what is...
  17. Corsa

    Capitalising interest - draft ruling

    The 2 are one in the same. Typically the vehicle to capitalise interest on a loan is via a LOC. However you could easily do this via a Personal Loan, Credit Card, an IP loan drawn down into a bank account. It is okay to capialise interest on an IP loan via any of the above methods. Equally...
  18. Corsa

    Capitalising interest - draft ruling

    This is correct.
  19. Corsa

    Capitalising interest - draft ruling

    This is allowed and does not complicate the tax return. You may however effect your tax situation as with the offset reducing the interest on your IP loan you have less costs and therefore you may pay more tax in relation to your job income however given that the tax brackets have all...
  20. Corsa

    Capitalising interest - draft ruling

    A correction on the original thread which is now closed posted by SamA. This is not correct. The tax treatment of this situation is not more certain if the individual has no non-deductible debt. The tax office looks at the purpose of the expense. If the expense is for an income earning...
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