Forum Replies Created
thanks for the advice, will start making some calls over this whole crystal ball thing
thanks D
Thanks Terry for the tips,
Who are you??, you seem to have an answer for everyone's Q's
Cheers
thanks for the ato link Terryw,
I will keep researching and seek further clarification from my accountant,
You seem to know your stuff, are you a CPA??
Cheers
Gavsam
Hi terryw,
Hmmm, will have to further clarify then…..
I was told that it is a Discretionary Family Trust, I mentioned a hybrid trust to my accountant, but was told that was not what the proposed 'discretionary family trust' is.
anywhere you would suggest online i can resolve / clarify this, ato ….?Hi there,
having got a fuller version of how this works from my accountant guru, here's what i found:
Discretionary Family Trust
to create u need: The legal owner (in name only) – trustee
The assets (business or other assets, such as a home) – trust fund
The beneficiaries
The individual who hires / fires the trustee – appointer or guardian (can be yourself and your spouse)
The trustee can be you and your spouse, just you or your company
So you – Borrowing money in your own name from bank and then providing that loan amount to the trust is much the same as borrowing money to invest in shares which is used for investment purposes and can be used as negative gearing against your personal wages, ie same for borrowing investment property.
The bank can still hold your title for the investment property as security – even though its owned by the trust (thus making it easier to get the bank to approve the loan).
As your paying the bank back the loan in your name, the trust is making very little in the way of losses, (perhaps maintenance, rental management fees etc) but by and large you are reaping the bulk of the rent, (so no losses are quarantined in the trust).
Pull the rent out of the trust as it comes in – then use that to help with your loan repayments etc
– CGT is still the same at 50%I invite any positive / negative thoughts, theories
cheers
