Zabeel01 wrote:
Thankyou so much for answering!  

Can I ask you, as you seem to know your stuff, if the assetts are in the trust and the company is the separate trading business trading as trustee for the trust, does this still make the assetts available to anyone sueing??  And can we still offset our depreciation against our business income…[Read more]

SMSF also provides the greatest form of asset protection available.

Maybe consider not selling. Borrow 80% initially, get it cashflow neutral, or negative geared after depreciation and then the new contributions to the fund may be tax free to an extent to – ie no 15% contributions tax if the fund is running at a loss. Keep saving in a 100% offset…[Read more]

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 contributions can be taxed at…[Read more]

Don't think hanging onto it that long is really necessary. You just have to make sure the fund meets the "sole purpose test" and is investing for the sole purpose of providing for the retirement of its members.

Make sure you seek legal advice before setting up a SMSF as they are complex with many many issues.

I have seen people analyse things for years.

I had one friend who has a Ph.D and an IT background. He spent years looking at trusts so that he could set up properly. Then when he nearly set up a hybrid trust the ATO had issues with some of them and that through him and then 2 more years went by. Finally he started looking at property and did all…[Read more]

Yes you can. But the fund cannot borrow to fund the renovation.

You are at risk.. Parternships should be avoided as you are liable for what the other person does.

But, you should seek legal advice because there are claw back provisiosn under the bankruptcy act. So if something does happen and you are sued and end up bankrupted then any assets you had transferred to the trust will be at risk of being clawed…[Read more]

how strange!

So strange it is funny.

Its very dangerous investing in other countries and even more so considering it is Indonesia.

On the general investment side:
1. How will you fund this? Can you borrow in Indonesia? Unlikely to be able to borrow from a bank.
2. How about the tax aspects? Very complex when dealing with cross border tax issues. You will need to lodge a tax return…[Read more]

I have had a few email enquires regarding using trusts and not maxing out.

I agree with Richard, the only way it could work is if you can get different people to act as directors for each trustee company and you just be an un named beneficiary.

Ps. You can rate your own posts too (that was me giving myself the thumbs up above).

HI,

Sorry I havne't read the posts in this thread so some of these things may already have been discussed.

I am finding it much harder to navigate than the old forum. Some difficulties are:

1. No button to mark all forums as read
2. Replies show under the post replied to and not at the end, making it difficult to navigate.
3. No automatic…[Read more]

James sure knows his tax, check out
http://houseofwealth.com.au/home/

Best to take your tax advise from a tax agent.

There is the market value substitution rule which which means that if you are not paying market value for an asset from a related party then the CGT will be calculated on market value. So the first element of the cost base, for CG, will be the value and not what you paid for it. see s 112-20 ITAA 1997

Before you do anything best to get legal advice as there are a few tax and asset protection strategies you could implement.

Avoid 1 because of the tax issues – very dangerous.

2. Is ok, but is a separate issue. You would need to consider in conjunction with 3.

3. Is the way to go, ie a separate loan for the equity extraction. The rates are high though.

dangermouse99 wrote:
Hello All
My accountant eventually setup a hybrid land trust ($3300), i really still struggle with it all, but just trust my accountants judgement. I just bought land in QLD and plan to put a house on it, it will be positive cash flow.
I have a wife who works part time and 2 kids, combined salary just under $150K and plan to…[Read more]

Cunnin wrote:
Just wondering if a Corporate trustee (company name) can be the same as the trust fund if possible eg XYZ PTY LTD trustee for XYZ family trust??

Yes names can be the same. But it could be an idea to have different names to avoid confusion. I have one trust with the same name as the trustee company and it is a bit confusing when…[Read more]

Hi Ella,

What is the question?

A spouse can buy out the other spouse's share, and if the property is in VIC it can be done on an investment property without stamp duty. CGT will apply.

It may be worth it to knock out the non deductible debt and to rearrange everything. ie a restructuring exercise

Here are my answers

1. Legal ownership changes at settlement, but you would have a beneficial interest in the property at exchange.

2. In NSW the stamp duty is payable within 3 months of contract date or at settlement whichever is earlier

3. This would be treated as a sub sale so both you and the new person would pay stamp duty – unless a…[Read more]