The Structuring Podcast

Fan Mail - Send us a Text Message Lenders are always ignoring instructions and often put extra borrowed funds into the wrong account and this can cause deductions of interest to be lost if this were to happen. But there is a simple solution where this happens. www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message Some people put money into a loan in order to save interest. This is repaying the loan. When that money is redrawn it is considered new borrowings for tax purposes. Because of this you should never temporarily park money into a loan which is deductible. This is because when you redraw the money later you will potentially lose the deductions on that portion of the...

Fan Mail - Send us a Text Message A mixed loan is a loan that has been used for more than 2 uses. An example is someone who has borrowed to buy a house paying extra off the loan and then using the redraw facility to borrow money to use as a deposit on an investment property. Mixed loans should be avoided in situations like this as every deposit into the loan will reduce the deductible debt as well...

Fan Mail - Send us a Text Message What is Debt Recycling?  It is a tax strategy which involves converting non-deductible debt into deductible debt. This doesn’t involve investing in something you otherwise wouldn’t have, but shows how you can structure the way you do it to save income tax. www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message The 4 main roles in a discretionary trust are:   a)  Trustee   b)  Settlor   c)  Appointor   d)  Beneficiaries www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message Borrowing and parking the borrowed money in an offset account before it is used comes with a risk of breaking the connection between the borrowings and the investing which could mean interest on the loan is not deductible or only partially deductible going forward. www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message There are 4 major things to consider in relation to asset protection:   a)  Creditors and Bankruptcy   b)  Death   c)  Incapacity   d)  Family Law What could happen to ‘your’ assets if any of these happened to yourself or others? www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message Before purchasing any major asset there is a checklist of things to consider and this includes, but is not limited to:   a)  Income Tax   b)  CGT   c)  GST   d)  Stamp Duty   e)  Payroll Tax   f)  Estate Planning   g)  Asset Protection   h)  Finance Both the immediate and long term future affect on all of these needs to be considered. www.structuring.com.au Suppor...

Fan Mail - Send us a Text Message Income tax is worked out by the formula: Tax Payable = Taxable Income x Tax Rate With taxable income being worked out by working out the assessable income less tax deductions. Taxable Income = Assessable Income - Deductible Expenses So it follows that tax can be reduced by reducing your taxable income which could be done by either or both of reducing your income o...

Fan Mail - Send us a Text Message This episode is a brief introduction to estate planning which involves preparing assets for when you are no longer in control. This includes setting up enduring powers of attorney, wills but also working through the passing of control of companies and trusts so that they fall into the right hands. www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message Trusts are the second greatest English invention (after the sandwich). Here I give a brief explanation of what a trust is. www.structuring.com.au Support the show www.structuring.com.au

Fan Mail - Send us a Text Message Interest can be deductible because of section 8-1 ITAA97, but it will only be deductible to the extent that it is from a loan connected to the production of assessable income. Support the show www.structuring.com.au

Fan Mail - Send us a Text Message Two or more joint owners of assets have to make a choice as to how they own them. It can be either:   a)  As joint tenants   b)  As tenants in common There are different estate planning consequences between the two, which many seem not to be aware of. Support the show www.structuring.com.au

Fan Mail - Send us a Text Message This podcast is hosted by Terry Waugh, aka Terryw, who is a solicitor, chartered tax adviser, mortgage broker and former financial planner. He runs a law firm and a mortgage broking company. www.structuring.com.au The 3 areas of “structuring” are:   a)  Ownership Structuring   b)  Loan Structuring   c)  Transactional Structuring Support the show www.structuring.co...