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  • Profile photo of TerrywTerryw
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    @terryw
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    Awesome, thank you so much Jaxon! I’ll do some more digging!

    Adam every step you make should serve a purpose,
    now the only real benefit is you can change a family (discretionary trust) ownership and payments at your own wants, this is huge value under the right setup and mainly pointless really while your building a portfolio.
    to be honest why pay for a complex or even simply trust structure if it does not achieve any major win for you or serve a very important part of your goals.
    Happy to chat about this and more anytime mate.

    This answer doesn’t make sens. Are you qualified and licensed to advise on trusts Jaxon?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    You would probably want to have at least one property that can access the main residence CGT and land tax concessions. If you are worried about asset protection on bankruptcy then there are strategies that allow for the property to be held in your personal name and to get some good asset protection as well.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Will solicitor be able to put some light on this? or is it Accountant? or Mortgage broker?

    A lawyer as it relates to the First Home Owner Grant legislation and duties act. You can look these up yourself too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    residential land is generally subject to GST so if you are registered or required to be registered and are conducting an enterprise you will need to remit 1/11 of the purchase price to the ATO.

    Seek specific tax advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Property for sale house 4 bedroom and 500m2 residential block for offers mid $500k range. Property will be in your name.
    I will require to buy back property in contract after 3 years
    If rented will return $465 per week rental – great location.
    Willing to pay margin on original purchase price to buyer when repurchasing in three years – lets discuss what you want to be paid

    Why would someone want to enter into such a deal? The entry and exit costs would be about 10%, the property would be cashflow negative and the prices may drop in 3 years. What is the potential advantage for a buyer?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    You are confusing a few issues here.
    The unit holders could potentially borrow to acquire units in the trust. If it is a fixed trust they could claim the interest on borrowings used to acquire these units. Claim the interest against their personal income.

    The trustee could borrow to acquire a property and any interest on such a loan would generally be a trust expense.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Not if you sell it to a trust first. Main residence won’t apply to trust owned property.

    Another option is to sell first one after subdivison and then sell it after 3 months, CGT free potentially. The second one can then become main residence.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    one way is to sell to a related entity just before sub division

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Profile photo of TerrywTerryw
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    @terryw
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    Yes you will be up for CGT or icnome tax and possibly GST.

    There are ways to minimise or eliminate these though so make sure you seek tax advice.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Don’t forget most also factor in existing debts as PI over loan terms less the IO term.
    so if you had a 5 year IO term on a 30 year loan and then next day go and get a new loan, the first loan will be assessed as if it is a 25 year PI loan – usually at 7%+

    And that is why it is so hard to buy multiple properties quickly these days.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    There is a a complex area of law known as ‘equity’ which could also throw several spanners in the works.

    Is the person advising on this a practising solicitor? You should seek advice on your equitable interest in the property. Even though you may not have a legal interest you could have recourse if you have paid for the property in part.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    If no mortgage then there should be nothing to discharge or register.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Hi! I’d like to find out what’s the process of adding a sibling’s name onto an existing house title? There will be no money exchange. Are there any legal implications and if there are any costs involved? Appreciate advice.

    See above.
    Heaps of legal implications.
    Costs include legal advice, tax advice, conveyancing, mortgage discharge new loan costs and registration of mortgage, stamp duty and possibly CGT unless the main residence exemption can apply.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Not correct Benny

    A valuation is only needed if an existing main residence becomes income producing.

    In this case an investment property is moved into so a valuation can’t be used.
    The CGT will be worked out on the portion of the time that the property was a rental.

    example.
    $100,000 purchase price.
    Lived in it for 1 year, then moved in.
    If sold for $200,000 after 2 years then 50% of this would be subject to CGT

    If sold it for $1mil in year 20 then 1/20th of this gain would be subject to CGT.

    So the longer you hold it the smaller the % would be.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    How long do you need to live in there before being exempt from CGT?

    It would never be exempt if it was originally an investment property

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    ‘roll over’ is a vague term. What do you mean by it?

    1. Seek financial advice
    2. Seek legal advice – why do you want to do this and do you know the consequences?
    3. why?
    4. seek legal advice and financial advice
    5. seek legal advice and financial advice and ask yourself ‘why?’

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    Yes
    s118-185 ITAA97
    Apportionment

    Keep good records of 3rd element cost base expenses.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    The property as been a ip for less than 6 years exempting it from CGT

    Just out of interest, how does an IP get exempt from CGT if it’s been an IP for less than 6 years? An IP property is never exempt from CGT unless it was your actual home.

    Yes that is right. It must have been the main residence first. The op said he lived in it for 9 years prior to renting it out.

    Doesn’t the rule of 6 years apply only if at the same time the owners don’t nominate another property as their PPOR? 🤔

    Yes thats right Ethan. But the election only has to be made in the year of sale of the first of the properties.
    So if someone owned 1 Smith Street, lived in it for 5 years and then rented it for 5 years and moved into a newly purchased 2 smith street (so he owned 2 properties for 5 years) then he could decide which of then to class as his main residence if he were to sell either Number 1 or Number 2 in say year 10.

    If next door they probably have gone up at a similar rate so he might be better off claiming the number one being sold as he could avoid the CGT. The one being kept would be subject to CGT at a future date – but best to delay the payment of tax to the future. Plus the CGT could be minimsed by the 3rd element cost base expenses.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    A joint purchase could help him where he could not borrow on his own.

    Or perhaps you could lend him the full purchase price and he could refinance this later when his serviceability improves.

    It might also be good if he can buy a main residence and use the 6 year rule to rent it out and avoid CGT too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of TerrywTerryw
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    @terryw
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    yes it could help. You would need to argue that you are not an owner of the business and do not have access to the company financials. If the shareholders have the same surname as you this may be difficult though.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 20 posts - 401 through 420 (of 16,319 total)