You will need a written agreement setting out how it will all work and should include things such as:
– whose name title is in
– loans
– contributions of money
– contributions of time, who does what etc
– what happens if one wants out and the other doesn't
etc

Look out for bankruptcy of your partner and/or future claims of spouses.

Agents fees – around 2 to 3% plus GST
Legals – around $1,000
CGT
Loan exit fees
Mortgage discharge fees

These are the main ones.

I would ask you to consider a few more options.

Why not move into this one briefly, obtain the FHOG and stamp duty exemptions live in it for 6 months (with boarders if necessary) and then move back home with the parents. This way you can have the property CGT free for up to 6 years, if not longer. The property could double in value within this time and CGT could eat up to 24% of the gain. Even if you never intend to sell it is worth doing as there will be a transfer eventually.

Also I suggest you do not pay the place off. If you do your cash is tied up and unable to be used tax effectively later on. Imagine if you start off with a $250,000 loan and pay this off within 10 years. You then decide you want to buy a new house to live in. Your cash is tied up, so your new house loan will be $250,000 more than it could have been. The interest on this extra $250,000 will not be deductible. that is about $17,500 pa in deductions. possibly $5,000 in missed out tax savings PER YEAR.

So I suggest you use a 100% offset account with an IO loan. Never pay 1c off the principle and be disciplined and save every cent you can into the offset until you have an amount the same as the loan balance.

This should save you the same as if you paid directly into the loan – actually it should save you more as you would normally have a small savings account separately even if paying the loan off fast. Once you have $250,000 in the offset you then have the choice of paying off the loan if you wish – or the flexibility to use this money as you deem fit. And if for example you took out $250,000 from the offset to use as a deposit on your new PPOR the interest payable on the investment would increase and this would be deductible – saving around $5,000 pa.

get a new accountant!

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

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 still be an IP of the trust. This should not affect anything.

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 will pay 1.7% pa on the value of the land which is a considerable amount so you should make sure you factor this into your calculations.

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 shareholder it couldn't be held liable for the company's debt other than the value of the shares. Unless you have two companies, you are probably operating under the company as trustee model – which means although they are separate for tax reasons they are essentially one legal entity – the trustee company.

Are you sure your children are the only beneficairies? This would be unusual. Usually there are named beneficaries and non named. eg grand children, cousins, spouses of children etc. You yourself are also probably a beneficiary.

Also not correct. see s118-145 ITAA 1936 for the 6 year rule. No need to be living in the house when you sell to claim the exemption.

If you claim another house as the main residence during this time then you can't get the exemption on both for the same period, but you could chose which one you wish to claim the exemption on. (note no exemption on trust owned)

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 later when the option is oging ot be exercised. If you put your name you will be up for stamp duty on the value of the property as will the end purchaser.
4. You would pay stamp duty on the $5k option and the developer on the contract price (sale of land) or the value.
5. a) when taking out the option. b) at settlement or within 3 months of exchange.
6. It could be, but you may not get the 50% discount so it probably won't matter if it classed as income (unless you have capital losses.
7. don't think gst would apply
8.
9. see 3.