Turn home into investment property 关于Interest deductible

KKei

情况:
有自主房A 价值是大概26W, 其中贷款了12W (没有offset account,只有redraw facility), payment ahead 大概是9W (意思说可以redraw 9w). 把A房变成Investment property. 我知道A房房贷里只有3W的Loan产生的利息是tax deductible. 哪怕refinance后也是只有3W产生的利息是可以抵扣收入的.

问题:
准备买套自主房B, 有什么办法把A房(投资房)里把资金释放到B房的房贷减少B房的利息,同时又能使A房贷款所产生的利息可以抵扣收入. (tax deductible) ? loan restructuring 行么? 我知道单纯的refince肯定不行.

LENNY_DONG

在哪个州

KKei

昆州.

在哪个州不都一样 ?

LENNY_DONG

印花税政策不一样

KKei

LENNY_DONG 发表于 2013-7-11 22:57
印花税政策不一样

我问的是有什么办法让A房的LOAN产生的整个interest tax deductible.

除了把房子卖了.

jeff_lawsons

Normaly if you intend to raise equity in your current residence to acquire a new main residence and convert your current residence to an investment property,  the use of the monies raised fromProperty A is of a private purpose and not an income-producing purpose. As such, you are not entitled to a deduction for the interest expense

However if you bought property A as sole proprietor and you married, then there may be some tax planning strategy.

1.     You sell property A to your spouse for its current market value.

2.     It will be tax free to you because it is your main residence.  Stamp duty should not apply becuase you transfer your property to your spouse.

3.     Your spouse will establish an investment loan for this amount with a bank with interest payable at their standard commercial rate to fund the purchase.

4.    You can use the proceeds from the sale towards the purchase of the your new home - Property B.

5.     Interest on property A is fully deductible, but everything is to do with your spourse now because your spourse now owns property A.

Amy_XY

哎，我也有同样的问题

KKei

jeff_lawsons 发表于 2013-7-12 11:46
Normaly if you intend to raise equity in your current residence to acquire a new main residence and  ...

Hi Jeff,

Thanks for your advice. But we are joint owner (50%/50%). I am thinking we might exchange the principle to make this property as full investment property and release the fund by seting up two separated investing loan.

Do you think if this works ?

Also I just realize we might pay the stamp (transfer) duty if we do this in QLD as per QLD law for stamp duty. (including transfer to spouse unless it is an order by court or a separation event)

or any other idea we can achieve the same result ?


Regards
K

LENNY_DONG

jeff_lawsons 发表于 2013-7-12 11:46
Normaly if you intend to raise equity in your current residence to acquire a new main residence and  ...

JEFF

WHEN U GIVE THIS ADVICE

NEED CAREFUL

EACH STATE HAS DIFFERENT POLICY FOR STAMP DUTY

ALSO THE PLANNING WILL INVOLVE TAX SCHEME....CLIENT NEED CONSIDER THE REASON TODO SO

KKei

LENNY_DONG 发表于 2013-7-12 12:51
JEFF

WHEN U GIVE THIS ADVICE

risk rather than reason.

but Jeff's advise is constructiable even though it is not applicable to my situation.

Lenny, do you have any good idea though ?

jeff_lawsons

LENNY_DONG 发表于 2013-7-12 12:51
JEFF

WHEN U GIVE THIS ADVICE

Thank you.  just notice the property is in QLD

jeff_lawsons

KKei 发表于 2013-7-12 12:39
Hi Jeff,

Thanks for your advice. But we are joint owner (50%/50%). I am thinking we might exchang ...

K, if you intend to purchase "50%" ownership from your spouse and convert the property A into a investment property, the interest on the borrowings shall be deductible.

Alternatively, you can set up a family trust and sell property A to the trust at current market value. Let the family trust borrows from the bank, the interest is fully deductible. However, the loss will be stayed in the trust until the trust sell the property and realise the capital gain in the future.  QLD stamp duty is also relevant.

KKei

jeff_lawsons 发表于 2013-7-12 13:57
K, if you intend to purchase "50%" ownership from your spouse and convert the property A into a in ...

either way I have to pay the stamp duty and solicitor fee. this can be approx. 8-10k.

Any other way you can think it out ?

.

jeff_lawsons

KKei 发表于 2013-7-12 14:02
either way I have to pay the stamp duty and solicitor fee. this can be approx. 8-10k.

Any other  ...

  A bit difficult.  Can't help, waiting for expert.

LENNY_DONG

jeff_lawsons 发表于 2013-7-12 14:36
A bit difficult.  Can't help, waiting for expert.

that is best advice.....no more la....