If you sell you will likely pay CGT and will loose future capital growth. You would also be up for agents fees and if you later buy something else more stamp duty.

Do you guestimate they will be growing more than they are costing you? if so it might be worth holding. ALso have to factor in the opportunity cost of having the money tied it, the…[Read more]

If the house is being used as security it would require a joint loan with both of you as borrowers, or 2 loans with each guaranteeing the other’s loan. Your income isn’t mentioned, but together you might be able to qualify.

Best to seek legal advice before purchase and consider entering into a deed of partition so the titles can be transferred…[Read more]

There should be no need for a private ruling for a question like this. basic tax advice should be enough.

1, Trust in NSW, but not true for most other states

2. Not true

3. Yes – a little ASIC fee plus tax returns

4 yes

5. trusts can negative gear like any taxpayer.

I am a trust lawyer and mortgage broker of 24 years and you have misunderstood a few things here.
A trust cannot borrow as its not a legal entity, just a relationship. It is the trustee that borrows. If hte trustee is a company the loan will be taken out by the company with the director giving a personal guarantee. that means it is not a debt of…[Read more]

Not enough info to know for sure, but it could potentially be the case that PPOR 1 could be claimed as the main residence for the whole period because of s118-145 ITAA97

6 year rule can apply even if you do buy another main residence- but you can’t claim the exemption on both for the overlapping period

If the trust’s income is going to be less than the tax free threshold there may be no tax benefit for the trust to claim depreciation. but it would still be added back to the cost base on sale, but there is an exception to this if the taxpayer doesnt know what the depreciation values are so the trust shouldn’t get a depreciation schedule if it…[Read more]

You shouldn’t be paying off trust properties as that will create legal issues. You could gift the trust (the trustee) money or lend it money which it can store in its offset account or pay off the loan. Either will decrease the expenses and mean the trust will have a larger taxable income so it could result in more tax.

2. The trustee…[Read more]

You need to apportion the cost base expenses between the 2 blocks and the best way to do that is to instruct a valuer to do it. The other block has a house on it so it cant be worked out on an area basis. Your valuation would be done as of the date of purchase. Main residence exemption can’t be used on vacant land and can only apply to 2 acres anyway

the contract ended at settlement so they are unlikely to be under any obligation to asset.

The trustee would need an express power in the trust deed to rent to a beneficiary.

But if the trustee as the same company you are referred to? There is a common law rule against contracting with yourself, even in different capacities. but the ATO seems to allow it for tax purposes. Best to seek legal advice

Why an accountant? Trusts are legal relationships so you are best off with a solicitor to explain, but if you are after advice on borrowing capacity they will need a credit licence as well so you would need a broker for this.

An asset held by a trustee of a discretionary trust is not an asset that you own, so it is the same as paying off someone else’s loan. It has various consequences so best to seek legal advice. One strategy might be to lend your cash interest free to the trustee instead and let them pay off the loan with the loan from you. Another may be to gift to…[Read more]

A company cannot own a trust. A company might be acting as trustee for a discretionary trust. The company would own the property, the company would be the borrower with the director of the borrower giving a personal guarantee. The lender would want the company to enter into the contract as trustee of the trust and have a right of indemnity out…[Read more]

It doesn’t matter what an accountant says as this would require legal advice.

This might be taken out of context or is a bit vague. First what are you trying to protection the property from? Creditors on bankruptcy? A trustee of a discretionary trust can still hold a property and let a beneficiary use it, perhaps rent free, if they have…[Read more]

It doesn’t matter what an accountant says as this would require legal advice.

This might be taken out of context or is a bit vague. First what are you trying to protection the property from? Creditors on bankruptcy? A trustee of a discretionary trust can still hold a property and let a beneficiary use it, perhaps rent free, if they have…[Read more]

There are banks other than the big 4 – actually one is a big 4 – that will disregard personal guarantees if the borrower is self funded. It is just a contingent liability for the guarantor so they are only liable if the borrower defaults.

There are none in Australia as far as I know

If you are investing in personal names you would be paying the same interest rate, generally, as a corporate trustee would be.

speak to a town planner to see if it is possible to do first.