I would only reccomend using a company in limited situations, if you have used up the land tax threshold for example. Loss of the CGT 50% discount means a company could pay up to 6% more tax than a person on the top tax rate.

For the first one I would be inclined for personal name, perhaps incorporating some borrowing strategies to increase…[Read more]

There is a potential way around this by proper structuring and it would involve making a gift to a discretionary trust and then borrowing it back to purchase property in your own name. Dont do this without legal advice though as many issues involved.

Yes thanks guys, I am a solicitor, but concentrate of estate planning law, asset protection and structures.

I would:

1. Bloody oath
2. Rents go up as do property values. Main residences are generally tax exempt – what other investment can get you this?
3. read 2.
4. Consider borrowing capacity for now and the future. Go For a loan as high as possible, up to 80%. This could be split into an IO loan with offset and a separate LOC for further investments,…[Read more]

How to structure a trust will depend on your family circumstances and what you want the trust to do. You should seek legal advice before setting it up as it can be costly to amend. Check out my book on trusts.

A child can earn up to $416 pa and not pay tax. Not much but it all helps.

A beneficiary can be trustee and the trustee can be a beneficiary, but not the sole beneficary as otherwise there would be no trust.

Why rule it out?

Benefits are broadly

estate pllanning
tax savings
asset protetection

See my book “Trusts and Tax for Property Investors”
download for free at http://www.propertytaxsolutions.com.au/

To set one up you should seek legal and tax advice and have a lawyer draft a deed. For stamp duty purposes trusts are generally set up with cash, just $10 or so,…[Read more]

From what I have seen I think it is best to go alone if possible. buying with someone else usually ends sooner than expected as each has different circumstances.

You should consider trusts from the first property onwards – not neccessarily using trust to own one but to at least consider it..

Trusts generally don’t help much under the family law side

I think it is a good strategy – depending on the circumstances.

Might help if you say what state the property is in.

In NSW Purchaser signs first

Yes this is legal advice and Darryl is the man to speak to.

Nope. Trusts do not get ACNs because an ACN is an Australian Company Number and only applies to companies.

Just do the sums.

CGT can be reduced by planning the timing of the sale and bringing forward other expenses. The proceeds of the sale be be used to save non deductible interest too.

I did a spousal transfer for a couple which increased their deductions by about $6000 per year but resulted in no CGT or stamp duty.

Standard practice. It is not handed over to the purchases until the cheques are received.

Yes it relates to creating a mixed loan. If you are redrawing from a PPOR loan then you would need to apportion the interest (assuming the redraw relates to investing). But since it is one big loan any deposit into the loan will come off both portions. This means you will be repaying tax deductible debt. Also it will become increasingly difficult…[Read more]

Interest on money borrowed to invest can be deductible under s8-1 ITAA97.
But borrowing to place into a savings account means the money is no longer borrowed money, but cash. If this cash is later invested the direct connection between the borrowing and the investing is not there.

There is an argument that the funds can be traced to the loan.…[Read more]