“If you established a hybrid trust however (cost is around $1,100 without a corporate trustee”. The price Dale has quoted includes a corporate trustee. I mentioned that this depends on your circumstances. Both Dale and I use the same deeds and I can assure you that you are not being ripped off.

Yes there are deeds which can be purchased online…[Read more]

Some bankers do not like HDT’s but it depends on who you are speaking with in the organisation. I have had no difficulties with HDT’s with Westpac Commercial Banking, ANZ Commercial Banking, St George Commercial Banking, Macquarie Bank, Suncorp Metway, GE Commercial.

It is more paperwork and their legal team does need to analyse the deeds so it…[Read more]

Terry is correct. If you borrow the funds and gift them to the discretionary trust then the interest will not be deductible to you. Similarly if you borrow the funds and lend them to the trust and anything less than the interest you are paying then again that portion will not be deductible. So effectively you will loose out on interest…[Read more]

James,

You could try Nick Moustacas at Strategic Wealth Management who is located in Bligh Street, Sydney.

Alternatively we are located at Norwest Business Park but a bit out of the way from Innery Sydney.

Terry,

Based on Section 104.10 it would be the 29th June as the date of disposal.

If finance was not approved then obviously the disposal would not occur (as the purchaser wouldn’t have funds to purchase the asset and the sale would fall through) and CGT Event A1 (dealing with disposals) would not apply.

Section 104.10 of the ITAA 1997 states that :

(3) The time of the event is:

(a) when you enter into the contract for the * disposal; or
(b) if there is no contract—when the change of ownership occurs.

So if you enter into the contract for disposal in say April 2006 then this is the date of disposal of the CGT asset. If you have a long…[Read more]

Terry,

You may not know but we have a new office in Norwest Business Park in Bella Vista in conjunction with our Central Coast office.

Mike

The first issue to consider is whether the gain is on revenue account or on capital account. The facts are limited so you firstly need to determine whether this constitutes part of your business operations or whether it will be captured on revenue account as an isolated transaction.

Taxation Ruling TR 92/3 provides guidance in determining…[Read more]

Michelle,

That’s a fair request. Being charged $330 to answer that simple question is, in my opinion only, not reasonable. I now know it’s not me because noone has called to ask me that question.

Gross, no blatant advertising for my firm. Just making comments on the fees. $330 – $550 per hour is the standard charge out rate for partners in…[Read more]

Michelle,

I could very well be the person who quoted $330 for the hour consultation as I do charge that. Fees are always a difficult thing. If your accountant is well versed in trusts (hybrids, unit and discretionary trust), understands family trust elections and interposed entity elections and is able to ensure that you are structured well…[Read more]

TradeOff,

This is totally incorrect. As per my previous post the income is deemed to have been received for CGT purposes when the contracts have been exchanged NOT when settled. When the income is received is irrelevant.

Read Section 104.10 of the Income tax Assessment Act 1997. The example provided in the legislation makes it abundantly…[Read more]

I don’t think it is unfair at all. Basing it on settlement date would be unfair as it would allow people to take advantage of the CGT discount when they may not be entitled to it (i.e. they held the property for less than 12 months but had a settlement date to ensure they went over the twelve month period). Or alternatively move the gain into a…[Read more]

Land tax on special trusts (hybrid discretionary trust and discretionary trusts are considered special trust) are taxed at 1.7% of the land value. So $1,241 would be the land tax component on $73K.

Where adjacent land is disposed of and the event covering that disposal is not the same event covering the disposal of the dwelling, then the main residence exemption cannot relieve the gain arising on the sale of the adjacent land under Section 118-165 of the ITAA 1997. This is no different to the pre-existing Section 160ZZQ(4) ITAA 1936 which…[Read more]

Gavin,

You are wrong. Under Section 104.10 of the ITAA 1997 CGT event A1 happens if you dispose of a CGT asset. Section 104.10 is included below with relevant sections and examples in bold. Note this is taken directly from the Act.

You dispose of a CGT asset if a change of ownership occurs from you to another entity, whether because of some…[Read more]

Cata,

Just wanted to clarify one point. Even with a hybrid trust any losses incurred by the trust are still retained in the trust and carried forward (provided they meet the trust loss rules). These losses are not distributed to the unit holders as you seem to suggest.

For clients who have purchased a new residential unit and if it is not…[Read more]

I like using the names of Greek Goddesses for the names of my companies and trusts. Nothing more satisfying than knowing you have a multitude of Greek Goddesses that you control.

terry,

You can certainly sell property in a company structure without actually selling the shares. However any capital gains made will be taxed at the company tax rate of 30% and the 50% CGT Discount cannot be applied as companies do not receive this concession.

The next issue is how to get the funds out of the company. Do you pay out a…[Read more]

I agree with gross. I post all of my information on the public forums and with people like Gross, TerryW and others also posting on the public forum I honestly am not concerned about the results group and what is posted in there.

Between this forum and Somersoft I doubt you couldn’t find an answer to a question in the public forum. Of course if…[Read more]

Christmas Day for me is going to spent with the air stewards on British Airways. First Class so they are always attentive. I anticipate some fruit cake, a few beers and spreading the Christmas cheer with my fellow travellers and airline staff.

Then when I get to London I get to enjoy another Christmas Day. Two Christmas’s in one year. A bonus !!!