Having read a few posts here about the problems that can be incurred by accessing equity incorrectly I'm a bit worried and want to ensure my accountant is going to be happy.
Here's the background. I have a dual title mortgage. 60% of the title and mortage value is in my name and 40% is in my trusts name as it rents it to my business.
A while back I accessed $100K from my personal mortgage and used the funds to purchase an IP in my trust's name. So technically the trust now owes me $100K
I'm refinancing both original mortgages on Tuesday with NAB and will have another $130,000 put into my personal account.
As I understand it, I simply have to work out the amount of equity that belongs to the trust and pay it straight into the trust account BEFORE I touch any of the funds right? Then the trust can just pay me back at some point for 'lending' the $100K for the IP it purchased.
I can do whatever I want with the equity I accessed from my personal mortage right?
Here's the background. I have a dual title mortgage. 60% of the title and mortage value is in my name and 40% is in my trusts name as it rents it to my business.
A while back I accessed $100K from my personal mortgage and used the funds to purchase an IP in my trust's name. So technically the trust now owes me $100K
I'm refinancing both original mortgages on Tuesday with NAB and will have another $130,000 put into my personal account.
As I understand it, I simply have to work out the amount of equity that belongs to the trust and pay it straight into the trust account BEFORE I touch any of the funds right? Then the trust can just pay me back at some point for 'lending' the $100K for the IP it purchased.
I can do whatever I want with the equity I accessed from my personal mortage right?