Total Members: 158,067

Terryw

  • Terryw replied to the topic Finding an Accountant for Trust Structure in the forum Help Needed! 6 months, 1 week ago

    Why an accountant? Trusts are legal relationships so you are best off with a solicitor to explain, but if you are after advice on borrowing capacity they will need a credit licence as well so you would need a broker for this.

  • Terryw replied to the topic Can trusts increase burrowing capacity? in the forum Finance 6 months, 1 week ago

    An asset held by a trustee of a discretionary trust is not an asset that you own, so it is the same as paying off someone else’s loan. It has various consequences so best to seek legal advice. One strategy might be to lend your cash interest free to the trustee instead and let them pay off the loan with the loan from you. Another may be to gift to…[Read more]

  • Terryw replied to the topic Purchasing a property using a trust in the forum Legal & Accounting 11 months, 2 weeks ago

    A company cannot own a trust. A company might be acting as trustee for a discretionary trust. The company would own the property, the company would be the borrower with the director of the borrower giving a personal guarantee. The lender would want the company to enter into the contract as trustee of the trust and have a right of indemnity out…[Read more]

  • Terryw replied to the topic Struggling to understand asset protection provided by a trust in the forum Help Needed! 11 months, 2 weeks ago

    It doesn’t matter what an accountant says as this would require legal advice.

     

    This might be taken out of context or is a bit vague. First what are you trying to protection the property from? Creditors on bankruptcy? A trustee of a discretionary trust can still hold a property and let a beneficiary use it, perhaps rent free, if they have…[Read more]

  • Terryw replied to the topic Struggling to understand asset protection provided by a trust in the forum Help Needed! 11 months, 2 weeks ago

    It doesn’t matter what an accountant says as this would require legal advice.

     

    This might be taken out of context or is a bit vague. First what are you trying to protection the property from? Creditors on bankruptcy? A trustee of a discretionary trust can still hold a property and let a beneficiary use it, perhaps rent free, if they have…[Read more]

  • There are banks other than the big 4 – actually one is a big 4 – that will disregard personal guarantees if the borrower is self funded. It is just a contingent liability for the guarantor so they are only liable if the borrower defaults.

  • Terryw replied to the topic Personal guarantees in the forum Help Needed! 11 months, 2 weeks ago

    There are none in Australia as far as I know

  • Terryw replied to the topic Using trusts to never get ''maxed out borrowing capacity''. in the forum Help Needed! 1 year, 4 months ago

    If you are investing in personal names you would be paying the same interest rate, generally, as a corporate trustee would be.

  • Terryw replied to the topic 2 dwellings on 1 block in the forum General Property 1 year, 4 months ago

    speak to a town planner to see if it is possible to do first.

  • Terryw replied to the topic Using trusts to never get ''maxed out borrowing capacity''. in the forum Help Needed! 1 year, 4 months ago

    as a lawyer specialising on trusts I wish I could charge this much for advice on trusts.

     

    This strategy works with companies – the company could be acting as a trustee or be acting in its personal capacity. i.e. a trust is optional – and in fact should be avoided in many cases due to the land tax laws.

  • Terryw replied to the topic To invest or pay down debt? in the forum Help Needed! 1 year, 4 months ago

    This doesn’t sound good to me. I think you should get some alternative tax advice – might be too late to fix things though.

     

    At the very least it might be worth shifting the cash in the offset to the loan on your main residence and to break this fixed period.

    You could also consider investing in a different entity, a more tax effective one,…[Read more]

  • Terryw replied to the topic To invest or pay down debt? in the forum Help Needed! 1 year, 4 months ago

    This doesn’t sound good to me. I think you should get some alternative tax advice – might be too late to fix things though.

     

    At the very least it might be worth shifting the cash in the offset to the loan on your main residence and to break this fixed period.

    You could also consider investing in a different entity, a more tax effective one,…[Read more]

  • Terryw replied to the topic To invest or pay down debt? in the forum Help Needed! 1 year, 4 months ago

    The answer will depend on the ownership structure for the existing properties as well as the business and the new investment. Plus your expectation on returns..

  • Terryw replied to the topic To invest or pay down debt? in the forum Help Needed! 1 year, 4 months ago

    The answer will depend on the ownership structure for the existing properties as well as the business and the new investment. Plus your expectation on returns..

  • Terryw replied to the topic What bank should I open my trust with? in the forum Help Needed! 1 year, 4 months ago

    If the trustee is going to borrow money it might as well open an account at the same bank it gets its loan from – ideally an offset account.

  • Terryw replied to the topic Draw equity from IP to fund PPOR purchase in the forum Finance 1 year, 4 months ago

    You cannot take out equity, all you can do is borrow money. You can do this by using the property as security for a loan and borrow the deposit and stamp duty etc for the new property. But the interest will not be deductible because the deductibility is determined by the use of the borrowed money – which isn’t income producing in this case.

  • Terryw replied to the topic I want to ask about the tax on the sale of the house. in the forum Opinionated! 1 year, 8 months ago

    They are statements not questions

    but

    1. No that is not correct

    2. No that is not correct – loans have no bearing on CGT

  • Terryw replied to the topic CGT event and CGT Discount in the forum Help Needed! 1 year, 8 months ago

    It is generally the contract dates – but not always.

  • Terryw replied to the topic Renting SMSF property to EX Spouse. in the forum Legal & Accounting 2 years ago

    It is possible, but something you should seek specific legal advice on.

  • Terryw replied to the topic Capital Gains Tax query in the forum Help Needed! 2 years ago

    Yes, it could be either

    a) cost base reset to the value at date first income producing

    or

    b) above plus using the 6 year rule and apportioning.

     

    seek tax advice

  • Load More

Terryw

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