Since you have a business in a trust already you could look at a new discretionary trust. If there are any losses then the business trust could distribute to the new trust to offset these losses and this may reduce your personal taxable income. You need to be careful when doing this – especially with vesting dates of the trust. So seek advice.You…[Read more]

hi IPThe parents could leave the asset to the discretionary trust. Not sure about hte SMSF though.But, it may be better to change the will to a testamentary discretionary trust for the added tax benefits s102AG – but these would probably acrue to the intervivos testamentary trust too, but it would be a hassle to keep the income separate. s102AG…[Read more]

Just do a google and you will find heaps.Then try http://www.trustmagic.com.au

Not really. You will end up paying more tax as companies are charged a flat rate of 30%. Also no 50% CGT discount available.Look at discretionary trusts instead.

You would hve to apply to have the guarantor released.And, if go for a new property then you can pay LMI so you won't need a new guarantor.

Generally you shouldn't pay down an investment loan as you will be tying up your money and it won't be tax effective if you need the money for personal expenses. But you also want to release your mum from the shakles of being your guarantor – the only way to do this is to gain equity and there are 2 ways to do this – capital growth and/or…[Read more]

Do you think the RBA is going to drop rates further/?

What about CGT?Agents commissions would be around 2%lawyers about $1500discharge mortgage etc $500But CGT could be bigger depending on your situation.

Don't know of the merits to your case, but you could tryhttp://www.aicsa.com.au/

What state?

thanks Dan

Hi BobAre you asking if the CG from the sale of 1 property could be streamed to, say, 2 people and that each of those people can get the 50% CGT discount.I think the answer is yes. Any accountants out there?

The best I have acheived was 1.1% off for a loan of about $1.5mil – but this was a few years ago now.

Bob1 wrote:
Hi,hope you don't mind me joining the conversation, please correct me if I'm wrong, but don't you get the 50%CGT discount in the company as a trustee scenario if you channel the profits to an individual – such as yourself / spouse?Thanks.

Not so.The trustee doesn't matter because the income flows through to the individual who pays…[Read more]

Think also of the opportunity cost.

Also, try getting a loan for these. Much harder that normal residential. Therefore it will be harder to sell too.

Heaps – here is just a fewTaxation – trust income retains its character. So if a unit trust made a capital gain it could flow through to the individual as a capital gain if the units are owned by a DT. If the units are owned by a Company then the character would change to that of divdend.companies also do not get the 50% CGT discountAsset…[Read more]

i suggest you run some figures.Also consider CGT as if you initially live in the property and later move out you may be able to retain the CGT exempt status of hte property

Its when you go senile – or die that counts!You need to plan for an attorney to operate in your place if you go into a coma or disappear or go crazy. The trust must go on. But it is  a bit tricky with a trust as a trustee cannot delegate their powers. When you die you go to heaven but the trust continues. So control of the trust must be passed…[Read more]

Unit trusts are generally good for two or more separate parties. Having the units owned by separate discretionary trusts should give each family separate control over their shares of the property.So this is a good structure. You will have to watch out for land tax though. Using a trust may mean paying 1.6% land tax per year where you otherwise…[Read more]