Forum Replies Created
- Charles 1 wrote:Hi Why would you want to place your PPR in a trust? the CGT concession loss is a biggy! I have read the ATO is very wary of people renting their PPR to themselves through trusts – they see it as a sham and disallow the investment deductions. Get accounting advice
Hi Charles1,
I appreciate your reply. Main reason is that I plan to live in the property, renovate it and then move on and have no interntion of seeling the property once I move out. Therefore I would prefer to have it in the Trust once it becomes and IP.
I didn't know that there was an issue with the ATO about renting from your own Trust. I was under the impression that a Trust is a seperate entity and therefore shouldn't really make a difference. Perhaps I'm incorrect…
RJB
Hi,
A little bit of track – and maybe a silly question – but do you need to set up a bank account for a trust? I have just purchased a property in the name of my trust but don't have a separate account for it… Shoud I…?
Thanks,
RJB
Thanks for both of your replies.
I have got in touch with my lender and also the DSE to follow up the caveat documents. Hopefully this is successful.
Cheers,
RJB
Hi All,
Thanks for your replies.
It seems an offset account makes the most sense in regards to how to use the money now and borrowing further in the future. Using an LOC to fund the next project also seems the way to go.
Thanks again…
Thanks Terry.
So initially would I be better off bowworing the cash from my existing IP or using it as security for the Trust? If I use it as security what other implications would come from it?
And in regards to borrowing capacity, it makes no difference whether it is in a trust or not? The trust is just for security?
Thanks…
