Category «Property Investments»

Debt Recycling!  Does shuffling funds around really change the nature of the debt?

Download PDF       Well a lot of this has to do with whether your dominant purpose is a tax benefit.  Yep Part IVA, the ATO’s secret weapon that defeated capitalised interest arrangements.       Debt recycling, suggesting that you can change non tax deductible debt into deductible debt by buying whatever the promotor is selling.   Very …

Victoria’s Latest Vacancy Tax

Download PDF       From 1st January 2025 a vacancy land tax applies to all residential properties in Victoria that are not considered to be occupied for at least 6 months of the previous year.   It is no longer just the inner and middle Melbourne areas that are caught.   The period considered is the calendar year …

Negative Gearing – What is the Real Problem?

Download PDF It is time all the reactionary politicians got their facts straight.   The only thing that is going to improve the housing crisis is more housing not punishing landlords.  That is like moving the deck chairs on the Titanic.   Landlord’s need to offset their losses, for example large repairs for tenant damage.  Nevertheless, we …

Mixed Purpose Loans Explained

Download PDF       Drawing the deposit for an investment property from a line of credit or similar account that is also used for other purposes will very quickly lead to none of the interest charged on the deposit being tax deductible.  That is probably a reduction of 20% of the interest you can claim each …