Good point LifeX, but from what I understand this only effects property in VIC and our units are in Tassie. Please correct me if Im wrong…
I hope this doesnt happen though and surprises me as most of the ‘pollies’ hold their investments in the same structure. I hope and believe they will have to accept some of the exemptions/changes the REIV…[Read more]
And also importantly I would like to having a different entity (a trust) owning the new units, I thought the trust could buy the land and then build. Without the separate titles the trust cant buy the land on its own…
Yes, I was talking about the units issued by the HDT to claim as a deduction.
The reason for my thinking of redeeming them when positive is to pay some of the principle back, but I see your point of loosing deductability – Never looked at at it this way.
Excuse my ignorance, but does this mean that I would then have to fund $5K out of my own pocket and therefore be tax deductable? And what happens to the $5K of depreciation that is still in the trust…? Could this then be distributed to other beneficaries?
Thanks again Terryw,
I understand mostly now. I think I might sit down and read Dale G’s “Trust Magic” and then revisit this to more fully understand my position.
Hmmm… If this is the case, I cant see the advantage in the trust…
Another example: I have a group of residential units in my own name (a ‘no no’ i know) and works to my advange over a trust. The figures go something like this:
Rental Income: $20K
Interest and Expenses: $20K
Depreciation on Units on Depreciation Schedule:…[Read more]