get a new accountant!and before you leave tell him to look up the tax act, s 118-145 ITAA 1997http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html

depends how it is set up.

Its good that you retaining one property with the CGT free status.That is true about the land tax. You will use up the tax free threshold soon if you keep buying properties so having a trust will not make much difference there as you will be up for land tax anyway.When you sell the main residence in your personal name, then the trust property will…[Read more]

I think in QLD is you are living in a trust property as your 'main residence' it may be exempt from land tax even though it is trust owned. However, I don't think this is the case in NSW. So even if you were living in your trust property as your main residence then it wouldn't qualify for the land tax exemption (or CGT main residence…[Read more]

Just remember was a private ruling so it only applies to the person that applied for the ruling. Your situation will be different and staying long term may or may not be an issue. If you want to be on the safe side you could apply for your own ruling.In NSW I don't think there are any land tax exemptions for main residences held in trusts. You…[Read more]

You may want to look at these rulingsPBR 83291http://www.ato.gov.au/rba/content.asp?doc=/RBA/Content/83291.htmTR 2002/18Income tax: home loan unit trust arrangement http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR200218/NAT/ATO/00001Also, depending on the state your property is located in, property that is being used as your main residence may…[Read more]

See your broker for further details.

I don't think it sounds crazy. It is a good idea that can save you money and give some asset protection. You just need to make sure you set it up well.Also consider the trust may be able to provide furniture, get the lawns mowed, repairs etc.There are some disadvantages such as:- probably more land tax- greater accounting fees- eventually rents…[Read more]

It sounds like you have a company as trustee. I am not sure but suspect this company is trading as trustee so the trust is the owner of the business. You would need a new one set up to protect the assets.If your company is trading in its own right, and the trust is owner of the shares then the same trust could own property – as if it is just a…[Read more]

Pootie Tang wrote:
Hi,I am new to the site and investing in property.I have a few questions and will try to keep it simple.My background is as follows:My husband and I have recently set up a Family Trust structure with us both as Directors. The income flowing through the trust is generated via fees for services with very little expenses and a g…[Read more]

JacM wrote:
I think you'll find that to avoid the CGT, you will have to be living in the house when you sell it.  The 6 year rule merely means you have 6 years to move back in to do this tax dodge.  However if you've moved to another house and declared it your PPOR, and turned the first house into an IP, then you will not be selling CGT f…[Read more]

JacM wrote:
You won't be able to negative gear the 1st place.  Not the loan interest anyway… because the original purpose of the loan was not for investment.

This is not really correct Jac. The original purpose of the loan was to purchase the house. If the house is rented out the loan would usually be deductible – assuming there were no…[Read more]

If you want specific answers you should be talking to your specialist solicitor and paying for it.My guess:1. $5k – do you mean this is the fee you will pay the vendor for selling you the option?2. Do you mean $30k or $730? $705,000 profit is pretty good!3. I think the name will be the one entering the agreement to purchase. This can be decided…[Read more]

EvolveI am not sure it would be possible to have person A claim the deductions and then person B get all the income or the CGs. There would be not commercially viable reason for A to borrow to buy the units if A wasn't guaranteed the income from the trust.It could be set up with A claiming the interest on their purchase of the units and then later…[Read more]

no, they don't like it. You may even be breaching the conditions of your mortgage agreement if you sell on vendor terms.If you just want to sell and will offer to fund the purchaser's deposit then the banks don't really like this either, but the problem will lie with the purchaser.

Just on the borrowing side, it may be better if you take out a LOC on the existing property and then borrow the rest as a new loan secured on the new property. This way you can avoid cross collateralisation.

If you never redraw then it would be ok. But your money is trapped – you never know when you may want or need to take some out for personal expenses.

The main thing is to know what it is worth compared to what you have agreed to pay.If it has dropped then you could lose much more than 10% if you don't complete.Would you qualify for the loan now? Some of these serviced apartments have great yields, so it may not be too bad.

Putting money into a LOC will save you interest but will cost you in tax. Everytime you place money into the account it is a repayment of a loan. Everytime you withdraw money out it is new borrowings.So if you put $100 in the LOC for one day and then take it out tomorrow to buy food the investment loan has decreased by $100 and the personal loan…[Read more]

I agree with WJThe offset account is a savings account and withdrawing money from it is not new borrowings so there are no tax issues with taking deposits from it.But removing money from an offset will result in higher interest being payable on the loan it is attached to. If your offset is attached to your home loan then you will pay more…[Read more]