Hi

You can’t add beneficiaries without causing a resettlement. This will mean a new trust being formed with cgt and stamp duty again.

By long term benefits I mean it will only be negative short term so the tax advantaged will soon come. Plus cgt and other benefits.

Other benefits include asset protection and estate planning. Trust assets do not…[Read more]

The appointor's role is just to appoint the trustee. It is the trustee that is the legal owner of the trust assets and therefore the trustee that must sign legal documents. Since a company can't sign the directors of the company are authorised to sign on its behalf.There is case law determining that the position of appointor is not 'property' and…[Read more]

An adult can earn up to $16,000 pa and pay no tax. This is great for those with one family member not working.Beneficiaries of a trust cannot be changed without a resettlement and huge tax costs, but you will find that the class of beneficiaries is very wide so you will not need to change anything.Also think of the long term benefits.

Hi RichardI beleive this is a bit of a grey area. The contract could be signed dated say 30 June with a condition that finance be approved which would occur say 01 July. The contract would not be binding until 01 July so I think this would technically be the date of the contract for tax purposes. But, I am not sure and this can have huge…[Read more]

Yes it can. But there are complex rules involved.

CG's are worked out and then added to your other taxable income. So the main way of reducing CGT would be to decrease your other income as much as possible. To do this you can use some strategies outlined by pwinne above.Another method is to defer CGT until you will have a low income year. Or maybe exchange contracts on 01 July to put off paying…[Read more]

Just ask ING to return your money. They will chase it up to the OSR or Gadens and return it to you. Ask for a bit extra to cover the lost interest as well.

Accountants cannot draft legal documents unless they are also solicitors. They can advise you on structuring and who to take what role etc in terms of tax. Solicitors can draft documents such as deeds or contracts, as well as give legal advice, but very few solcitors do their own trust deed drafting because of the complexity involved and the time…[Read more]

A vendor financier would likely be a credit provider because they are selling the property on credit. Selling of an option wouldn't be credit as there is no lending involved.Paul Dobson of this forum was running courses on the NCCP for vendor financiers.

It makes sense.Say you have $100,000 cash. If you put that in an interest bearing account at 10% you may get $10,000 pa interest, but you would pay tax on it. Say 30% tax = $7,000 left over. You would also be paying interest on your home loan which is not deductible.Now say you pay $100,000 into your loan. You will not be earning interest, but…[Read more]

I would suggest you put the money in the offset account until you want to use it. If you want to invest with it you should then pay down your loan and reborrow the money so the intereest in deductible.

There is a very expensive book out there called something like "Drafting wills and trusts" which is a good read. It outlines the anatomy of a deed and explains each clause in a deed and what it is for etc. Costs about $350 but I think there is a CD included too which contains draft deeds and different clauses. This book is available at Sydney Uni…[Read more]

There are also considerable asset protection advantages of using a discretionary trust.

Yes in Japan for a while. I am not working at the moment.

Yep.Renovation costs would probably be only depreciatable. You could only probably claim 2.5% pa for 40 years

Strataman wrote:
Hi Everyone,Hope someone can help meJust a little confused with loan structuring.. My circumstances:PPOR is 110,000IP 630,000LOC  0 (20000 Max)i think im right in saying that my IP and LOC ( that pays the interest on my IP) are both tax deductable, out of the 630000 borrowed for the IP, 20000 was added to my everyday account…[Read more]

Basically if you rent out half of your home then half of all costs associated with the hous will be tax deductible. However the rent will be income and the portion of the house rented out would be subject to CGT. It is the owner of the house that claims the deductions and pays the tax so who claims will depend on who owns. year rule only applies…[Read more]

Also be careful about using 2 agents. Read your agreements carefully and make sure you won't be up for 2 commssions.

Not really.Generally only a percentage of the rents will be taken into account – maybe 80%. Also you will have higher taxes with higher income so this will work against you too.talk to a broker as each bank has different policies and some take into account deductibility of interest and add back depreciation.

Segregate your properties. ie. dont keep all your eggs in the one basket. Dont secure things against your PPOR either as it will be at risk.Def look at discretionary trusts.