[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

August 1, 2005 - 1:05 pm

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 have suggested.

AP

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

August 1, 2005 - 11:46 am

How this for an idea…?
The Trust purchased the units off the plan from us then no stamp duty would be payable… Any thoughts?
AP

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

August 1, 2005 - 6:28 am

Thanks CATA,

I imagine then selling the land at market would be better then, but then it would have to be subdivided first before it could buy it..?

AP

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

August 1, 2005 - 6:23 am

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…

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

July 31, 2005 - 11:12 pm

The reason why I’m interested is because as soon as they are on their own title they have a real value should I choose to sell them, and additionally just to understand the process…

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

April 15, 2005 - 1:03 am

Hi Tonny

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.

Adam

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

April 11, 2005 - 1:31 am

Coasty,

Thanks again… The $5K is as you explained: Net Profit.

I now understand all (well maybe not all, but a whole lot more.[biggrin]

Cheers,

Adam

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

April 7, 2005 - 6:44 am

Thanks coasty,

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?

Adam

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

April 7, 2005 - 4:58 am

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.

[cap]
Adanm

[apapworthParticipant@apapworthJoin Date: 2005Post Count: 14]

April 7, 2005 - 12:52 am

Thanks Terryw,

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: $5K

So therefore I get a $5,000 tax deduction on my personal income… If this were in a trust, I would not be able to pass on this tax deduction to myself….

If I understand this correctly (and im not sure I do) it means I am better off having the units in my own name…

Any thoughts or clarifications??

Thanks

Adam