VitaThink about deductibility. You will have a smaller deductible loan and a larger non deductible.

Hi AndyIf it is the company that is conducitng the business then the shareholder cannot be held liable if it is sued and you trust sounds like it is just a shareholder so you should be right. If the company goes down you just lose the shares.

Nothing changes. You just claim the costs on your tax return.

You should never put a deposit from your own cash if you still have a PPOR loan – otherwise you will be paying more tax. If you can borrow it all the better.Also beware of just buying a property because of the rent. If there is no capital growth it could end up costing you.

If it is their only main residence the it is usually CGT exempt. It can still be CGT exempt if it s rented out for up to 6 years while they are absent. If not rented the exemption applied indefinitely. I think residence doesn't matter, but you may want to check this (ie if they are non-residents for tax puposes which is different to immirgation…[Read more]

Stamp duty will be the killer – for them when they buy and then for you when you re-purchase. You will also have legal fees. If you are having financial troubles and you actually go bankrupt the transaction can be reversed – if it was done with the intention of defeating creditors then there is no time limt. If it was done at markert value and the…[Read more]

I should have added that people on low incomes can receive a tax rebate. Thats why the taxable income is lower but they can receive a higher amount and not pay tax – the rebate means that the government pays the first bit of tax for you.I don't know how it is worked out for kids, but for adults the first $6,000 in tax free, but if you were to earn…[Read more]

No don't use redraw on the existing loan. Set up a completely new IO loan get the money and then pay it back down to $1 and it will be available for redraw.

Does your credit union offer a loan with redraw? (ideally free redraw).If so set up another loan with them and take the money and run – or put it back into the loan and redraw it when you need to = LOC without a chequebook

Terryw wrote:
Brisbane AndyHope you haven't got assets and a business under the same trust – could be risky.

Hi Andy, sorry just read your post up the top. Your businesses will be run by companies with the shares held by the trust so that should be ok.

adam.risborg wrote:
Do you also list your corporate trustee as a beneficiary to the discretionary trust? Alternatively would you list another separate company as a beneficiary to the trust? I imagine this may be good in years where your trust income is unusually high, and some of that income can be 'stored' within the beneficiary company before…[Read more]

Brisbane AndyHope you haven't got assets and a business under the same trust – could be risky.

You will need a lawyer to arrange the transfer. you will need to pay the stamp duty and arrange the loan.

AdamThis is from last fin yearhttp://ato.gov.au/individuals/content.asp?doc=/content/20046.htm&pc=001/002/046/002/018&mnu=&mfp=&st=&cy=1

Yep, sorry about giving you a heart attack! You wouldn't want to give you accountant money anyway so thats ok

Terryw wrote:
Yes, there was a guy posting on here some time back that made a serious mistkae with his trust set up – I forget the details now, but ti fix it would have cost more than the trust set up.Also one of my clients had his son as appointor – which meant that his son could never receive a distribution from the trust.One of the biggest…[Read more]

Sorry Adam, I meant Settlor. will change it above.

I would suggest you sit down and write your goals. Then you should work out what you need to get the property you want – income and deposits etc. Then you work out how you will get there whether by wroking and borrowing the equity in the first one or by developing etc.

The cost is deductible and it should save you thousands in tax so well worth getting.

Actually trusts terms depend on the wording of the deed. Some deeds have been recycled by accountants, breach copyright and are so old that they don't incorporate GST. So you do have to be careful. Even the good deeds – they will vary in wording from lawyer to lawyer.