Forum Replies Created
- JacM wrote:Hm I had understood a SMSF could not essentially go into business with or joint-own an asset with a related party. Would the 5% rule apply here then?
No because of the above section I quoted which specificially says a jointly owned asset is not classed as an in house asset.
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JacM wrote:No. Your SMSF is not allowed to jv with a related partySIS Act section 71(1)(i)
http://www.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s71.html(1) For the purposes of this Part, an in-house asset of a superannuation fund is an asset of the fund that is a loan to, or an investment in, a related party of the fund, an investment in a related trust of the fund, or an asset of the fund subject to a lease or lease arrangement between a trustee of the fund and a related party of the fund, but does not include: …
(i) property owned by the superannuation fund and a related party as tenants in common, other than property subject to a lease or lease arrangement between a trustee of the fund and a related party; or
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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JacM wrote:No. Your SMSF is not allowed to jv with a related partyJacM – any authority to back this up?
I don’t know of any restriction in a SMSF buying property jointly with a related party.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Because of the land tax issues, I would tend to favour buying in your personal names with planning on which names to use first.
If there are asset protection issues then a discretionary trust. If the land is in VIC a personal name should be considered first because of the stamp duty issues on spousal sale strategy, but other states maybe a fixed unit trust because of the flexibility.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Wilko, a trustee of a SMSF cannot borrow money, s67. But s67A allows a trustee to borrow money (wtf?) by introducing an exception. This is to acquire a single acquireable asset.
(incidently you know when legislation has been amended when the numbering jumps out of sync and letters have been inserted such as s67 then s67A s67B etc?
So with your LOC how are you going to get than into the SMSF? Loan or contribution?
If there was no loan then sub-division would be possible I think.
Another possibility is a JV with a SMSF. Buying Tenants in Common 50/50 with a SMSF
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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That is longer than the life of a trust and the live of anyone buying!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes, lawyers can take interstate clients. I wouldn't do conveyancing interstate though as the proceedures vary from state to state.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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wilko1 wrote:Just sign it and or nominee and get your solicitor or conveyancer to nominate which company/trust you select. That way it's also their fault for any wording errors.Get some legal advice first.
This could result in paying stamp duty twice in some states, especially if the trust is not in existance at the date of contract.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes, really there is no need to document the trust at all. But it may be a good idea to put XX ATF YYY.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Usually date of contract for the purchase of the land.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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I've been approached by a forum member to fix a trust he set up incorrectly. Property already purchased so it would take around $5k in legal fees to fix this particular problem with all the loans being redone. Past tax mistakes unable to be fixed.
A trust could be set up within a hour, but you really need time to seek legal advice (from a lawyer!!!) and to digest this advice. ie you should ideally stew things over for a while. Corporate trustee/individual, strucutre of the trustee company, structure of the trust, type of trust, succession plan for trust, trustee duties, trustee powers, asset protection enhancements, how to use the trust, how to get money into the trust etc all need to be considered. You should also consider the tax side of things too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
If it was first used as a main residence then two options
1. Keep it as your main residence while renting out, temp absence rules. s118_145 ITAA 1997
or
2. s118-192 ITAA 1997 first use to produce income.
” (2) You are taken to have * acquired the * dwelling or your * ownership interest at the income time for its * market value at that time.“
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.192.htmlTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
suzanneperth wrote:Does anyone know of lenders who will lend to a trust where the beneficiaries have bad credit but the trust is good and can put a sizable deposit down?Yes, all lenders that lend to trusts. As long as the trustee or director of the trustee is clean. This is for discretionary trusts. Unit trusts may be a bit harder, but can also be done.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Someone could park cars there maybe?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Be prepared for a low valuation for new off the plan type propertie.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You need to calculate the cost base. Cost of land and materials, stamp duty etc, Market value wouldn't come into it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
This is unusual. Is it near Manly in Sydney?
How many years on the lease left?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You have to be careful with leases with commercial.
Had a friend who purchased a property with a nice lease in place. A few weeks after settlement the company leasing was placed into administration. It turns out they were connected to the company selling the property. ie the company owner.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
That sounsd good. Can Carbon Dioxide be used for anything useful?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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ignoblis wrote:I've been reading a lot of good info on this site regarding redraw tax implications but still having trouble getting to grips with it all.I have a 400k loan with 100k available to redraw. I'm hoping to redraw these funds in the future to purchase another property which would initially be a PPOR before turning it into a IP in 2-3 years. How best can I access the 100K redraw amount without losing the ability to seek a tax deduction on the interest of the 100K? Some options I have considered are:
1. Could I refinance the current loan and increase the loan amount back to 400K then put the 100 into offset until I need it for the 2nd property?
2. Is there anyway of redrawing the 100K and placing it in the offset and overtime being able to utilise it without negative tax implications?
3. Probably most likely – Redraw 100K from a loan and use this to purchase a 300K PPOR which would then be converted to an IP 2 years down the track. I assume I would then be entitled to claim an offset on the 100K
As I understand it I would not be able to get claim an offset initially while living in the new PPOR however once it was turned into an investment property I would be able to seek a tax deduction for the interest on the 100K?
No matter how much I read about this it is all very confusing, or perhaps I'm overcomplicating things?
1. No
2. no
3. maybe
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
