I am not sure how it works out without seeing statements, but I suggest you speak to the complaints section there. This sort of thing happens with every lender and they all have a special team to look into these things

Beneficiaries get sued all the time. But if the trustee gets sued then it won't affect the beneficiaries.

I think you need to seek some legal and tax advice about your particular set up as there are many other issues to address.

before tax

$1500 pw = $78,000 pa

To get $78,000 pa on a rental yield of 4%:
= $78,000/0.04
= $1,950,000

So you would need about $2 million worth of unencumbered property to get $78,000 before tax if you were getting a yield of 4% after paying costs.

I haven't heard of anything, but I am based in NSW so that doesn't mean much!

In NSW stamp duty is due to be abolished on the transfer of units in unit trusts and shares in private companies from next july. Maybe it was this you thinking of?? Abolishing stamp duty will be a huge revenue loss for the govt so hard to see it happening.

Yes, don't have a trading company as trustee.

You could have two trusts with separate trustees. One trust could own the assets and one trade. This is what they call a service trust and it is a way to divert profit from teh trading trust which is higher risk of being used. The trading trust would pay the service trust a fee for the use of the…[Read more]

Gee that is very high.

I could put you onto someone who could more than halve your bill.

Zabeel01 wrote:
The position I would ultimately like to be in one where we can continue to offset our business income with our depreciating assets and also have the assets protected from being sued, we have not been sued or anything but the way some people have dealt with us we feel we need to protect ourselves.

Re: the current claw back laws,…[Read more]

Zabeel01 wrote:
Plus I have recently taken over a new property with assets which I will declare this tax year as depreciating for the first time so if I were to add these for the first time to a trust or company I am assuming there would be no transfer / stamp duty??? Is this correct, 

Incorrect

You seem to be focused on depreciation.…[Read more]

Zabeel01 wrote:
Also in regards to transferring assets into a company  or trust from a partnership, which are already depreciating, would I still have to pay stamp duty for these?

This wold depend on which state the assets are in and what assets they are.

Zabeel01 wrote:
Can anyone give me any advice…from what I understand…there would be no way to set up something that could offset taxable income with the depreciating assets while at the same time protect all the assets from anyone who decides to sue / seize assets.

Not sure what you mean here.

Any entity to claim depreciation and this…[Read more]

ygue6072 wrote:
From my understand about Of the Plan purchases… when you sign the contract you agree to that price (e.g. $360k) if in 12-18months time when it is time to settle the property value decreases (e.g. to $300k) you are still locked into the original price of $360k. This is why obtaining finance might be difficult as the bank…[Read more]

mu5hu wrote:

Terryw wrote:

Jacki wrote:
I can't help with any of the preceeding questions as am new to the game myself. However I have a question regarding unit trusts and potential dangers when splitting units.

I have just a read a book that recommends (when negative gearing) issuing income units to the main income earner to gain maximum…[Read more]

dymockc wrote:
I would also think, that if the property would to decrease closer to settlement, that my LVR would be higher as I would in theory be borrowing less?

But you would still be paying the same amount even if the property decreased. The loan will decease in size with the LVR based on the value, but the purchase price the same. So if…[Read more]

From smsftr 2012/1

Money other than borrowings used to improve an asset

30. Subparagraph 67A(1)(a)(i) provides that borrowings under an LRBA cannot be used to fund improvements. However, money from other sources can be used to improve (or repair or maintain) a single acquirable asset. For example, accumulated funds held by the SMSF may be used…[Read more]

Re borrowing for property in a SMSF, this is the ruling to read:

SMSFR 2012/1

Self Managed Superannuation Funds: limited recourse borrowing arrangements – application of key concepts
http://law.ato.gov.au/atolaw/view.htm?docid=SFR/SMSFR20121/NAT/ATO/00001

(if itnerested)

JacM wrote:

Terryw wrote:
Yes, it may be a good idea to do in your SMSF. Seek professional advice as things are tricky.

e.g. The SMSF must pay for all expenses. If you pay yourself then it could be deemed a contribution to the fund and this could result in you contributing too much for the year and the fund attacting penalty tax – excess…[Read more]

stu_macca wrote:
Hi,

I'm also looking at setting up a trust. Primary reasons are allow us to divert income to the lower income earner in the future (perhaps when we have more passive income and one can invest full time), asset protection and to be able to pass money in to the kids efficiently.

I have recently been advised by my buyers agent…[Read more]

No.

This is because the partners of a partnership are jointly and severally liable for debts. Could be very dangerous.

Also if you have a charge over personal property then this itself is property. So if you were to get sued the creditor would stand in your shoes and have the benefit of the charge or mortgage over the asset.

There is also…[Read more]

Zabeel01 wrote:

I was told if the company was the trading business and trustee for the trust that the assetts were in, then the assetts were safe as we would be sole directors of a company that owns nothing & they can’t sue the Trust because we would be beneficiaries only, and beneficiaries cant be sued.  Is this true?
 

This is a bit…[Read more]