在澳大利亚 Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int
Hi guys!
Wondering if anyone maybe able to help me out here.
At this stage I'm thinking about how I could do the following:
# Buy a block of land (Sydney's Northern beaches) 50/50% with my brother. Demolish and build either a duplex or 2 townhouses (then strata properties)
# When built -he lives in my half and pays me market rent, and I live in his and do likewise...claiming tax advanatages etc
How could I do this -w/o incurring 2 lots of stamps etc
Cheers
Sam
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Originally posted by Sam_HHi Sam,
# When built -he lives in my half and pays me market rent, and I live in his and do likewise...claiming tax advanatages etc
How could I do this -w/o incurring 2 lots of stamps etc
Cheers
Sam Click to expand...
You are asking for troubles if you implement this strategy!!!. The ATO will get you. The 1rst question they will ask is: What was the commercial reason for you to do this??? if it was just for TAX evation then....
I was told of an even more "clever" way to do this. It happened that 4 o 5 frinds from job (not mine!), bought property in one place. Then, friend 1 rented to friend 2, friend 2 rented to friend 3, friend 3 rented to friend 4 and this last rented to friend 1. I don't know how by after some years of this "clever" strategy, ATO found out. They lost eveything in penalties, back interest, etc... They almost went to jail.
Good luck and keep on thinking,
James.
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Originally posted by Sam_HIf the property is bought by a company or a familty trust then, it can be rented to you two without having to have 2 titles. However, you have to be able to explain ATO the commercial reason for this arrangement (paying rent to yourself).
How could I do this -w/o incurring 2 lots of stamps etc
Cheers
Sam Click to expand...
Regards,
James.
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Re: Re: How can I do this?
Originally posted by agent007Hi
However, you have to be able to explain ATO the commercial reason for this arrangement (paying rent to yourself). Click to expand...
I think if you say it is the first of many planned and use asset protection in a family trust you are ok. Unit trust is not ok acording to the ATO.
bundy
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You will also lose your CGT exemption which may be quite substantial in a buoyant market.
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James
I thought its ok to rent a place to family/friends as long as you are changing market rent?
Ive heard of a lot of people renting ech others properties out?
Cheers
Sam
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Originally posted by Sam_HHi Sam,
James
I thought its ok to rent a place to family/friends as long as you are changing market rent?
Ive heard of a lot of people renting ech others properties out?
Cheers
Sam Click to expand...
First of all, I am not a tax agent neither an accountant.
There is nothing wrong to rent a place to family or friends. The issue here is that you are renting the property next door just for TAX reasons. There is not a real commercial advantage for you to do that.
>Ive heard of a lot of people renting ech others properties out?
If your property is let's say in Manly and mine is in Chatswood then, we can rent each other and clain tax. We can argue work proximity and many other things in order to support this arrangement. No problems here. But, if we are next door renting each other. Why???? it's only tax..... ATO won't like it. Talk to your accountant. Maybe Dale wants to comment?
Regards,
James.