Jpcashflow wrote:
Hi terry two my properties are securing the Bussiness

I don't think this would be correct. You have a loan which may have been used to purchase the business. Probably as Richard said you have real property securing this loan.

I was just thinking, from what was written above,  if you had a business which was securing the…[Read more]

They are not accounting structures but legal structures really.  A trust is not a separate entity but a legal arrangement where a trustee owns property on behalf of beneficiaries. For tax purposes trusts are treated as separate entities so a trustee buying a property is ignored and the trust is assessed on the property. Therefore from a tax angle…[Read more]

Is the 'business' securing a loan?

In that case a third party wouldn't probaby be a beneficiary of your trust so you would have to transfer part of your business to them. In NSW this would involve stamp duty. You would also be up for CGT if there was a profit. Then you have to factor in what do they get for their money, how do you compensate yourselfs for working extra if they…[Read more]

Best to avoid partners if possible.
What structure holds the business?

If your going to sell then maybe a discretionary trust would be good. Could use the same trustee as the unit trust or personal trustee.

This way any profit could be flexibly distributed – including to the unit trust if need be – to off any losses and save tax.

Derek wrote:

Terryw wrote:
That changes things The cost base will be the market value at the date of death.

Is that because property was bought pre-1985?

Yep. see item 4 in s128-15(4) ITAA
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s128.15.html

Most signatures evolve over time.

There is no register of signatures and you could change yours at any time. This doesn't affect any contracts entered into as you would still be the same person – generally speaking.

Does your mortgage agreement allow you to assign the debt?

I don't think this would be effective for social security purposes.

That changes things The cost base will be the market value at the date of death.

The answer will depend on many things.

Was it the main residence of the deceased? Was it pre 1985 property? Is it your main residence? Do you inherit via a trust? etc

yes, probably should get a valuation as of the date it ceased to be your main residence.

You could be eligible for full or partial exemption

Thanks

here is the link
http://itunes.apple.com/au/app/commercial-property-made-easy/id541510448?mt=8

Agent Orange?

sorry

The legislation says
"118-145(4)  If you make the choice, you cannot treat any other * dwelling as your main residence while you apply this section, except if section 118-140 (about changing main residences) applies."

So you cannot treat the first house as your main residence if you treated your house overseas or the one in QLD as your main…[Read more]

Me too!.

I hear she even gives back rubs on Wednesdays to each tenant and cooks them a meal on fridays.

boney bream wrote:
I did give my tenants a carton of beer and a bottle of bubbly as a gift.  They have been great doing odd jobs at no price.

Can this be tax deductible (Terryw), they probably saved me $500 in costs.

You will have to substantiate why it owuld be deductible. Possibly it could relate to expenses incurred in producing an…[Read more]

PLC wrote:
So therefore, the spouse can then legally claim the full loan value as deductible debt, even if it is above the original amount, yes?

Yes, it would be just like a normal purchase.

see
ATO ID 2001/79 http://law.ato.gov.au/atolaw/view.htm?docid=AID/AID200179/00001

Yes, it wont help with the finance, but if you were running a sheep farm it might be treated differently to a non-income producing house on land.