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Hi All,
Has anyone had experiance in paying large ATO debt by accessing equity in a property?
Example:
ATO Debt = 90k
Property Val = 620k
Loan Amount = 400k
LMI = 90%
Thanks
Hi All,
Has anyone had experiance in paying large ATO debt by accessing equity in a property?
Example:
ATO Debt = 90k
Property Val = 620k
Loan Amount = 400k
LMI = 90%
Thanks
Hi maadha,
$400 / $620 = 64.51%
$490 / $620 = 79.03%
Not sure where you get 90% from.
If under 80% it can be done with at least 1 lender I know of at good %'s without going to non prime lenders.
It shouldn't be too difficult to work with this, but make sure you put some strategies in place to managed tax in the future. You don't want to be in the same position next year.
is the property in your personal name? if not may be better to bankrupt
Not too hard at 80%. Tricky at 90%.
It shouldn't be too difficult to work with this, but make sure you put some strategies in place to managed tax in the future. You don't want to be in the same position next year.
Situation arose because the management company I use for work (I'm an It contractor) wound itself up and the ato has swooped in an audited all contractors involved. Basically saying I'm an employee and can't claim all the expenses I've had for the past 5 years. They've now stung me with 90k amendment including 35k in fines and interest.
They don't seem to care that I was following the advice of a company specialising in this who had their structure setup by kpmg. In fact, the ato audited several contractors over the years but the company prepared all the docs and figures and the ato never won. It seems now That we are on our own they (ATO) just want some money back and will go after the small fry to get it and I honestly feel like I'm under attack as a cheat or criminal the way I've been dealt with.
The worst thing is that I may have to sell my only property to get out of this hole because I've got 3 kids, all under 7 and another on the way. I'm a contractor so can't rely on long term income so really don't know where to turn with this.
With no super to speak of this property was for our retirement And I was just about to use equity for our next IP. Not now though after this kick in the guts.
Cheers for all your replies.
was a serious suggestion, however it appears property is in personal name... no structure in place
Ausprop i meant that as a side note,no malice towards you,i found it albeit.
I've been in a worse tax hole than that- it was a very hard time, and caused some big pressures on us- personally as well as financially. I'm very fortunate that my wife is so strong- the marriage may not have survived otherwise.
The ATO does usually give options to make arrangements to pay over time- at a cost of course, but it may be an option. You may be able to pay off some of the debt by drawing equity and pay the rest over a period.
There is light at the end of the tunnel. It was a very dark time but we can now look back thankful that it's all over.
The ATO does usually give options to make arrangements to pay over time- at a cost of course, but it may be an option.