You've posted the same post twice.
https://www.propertyinvesting.com/forums/property-investing/help-needed/4329186

Do you want to make lots of money or just a little bit?

You need to refer to what state you want to wrap in, as laws vary.

Looks good in theory. Each unit holder could also hold their own units in their own discretionary trusts too.

But in practice, it will be messy! First of all banks don't really like to lend to people borrowing to buy units in a trust. They will want all unit holders to be on the loan, or guarantee the loan. Each will be jointly and severally liable that means if A, B, C and D stop paying then E must pay or if things go wrong the bank can sue all or just 1 or more people involved.

Asset protection in a unit trust is nil. The units are 'property' of the person that owns them. That means if person A is sued, their units are at risk. If the trustee of the trust enters into some contract all unit holders could be liable too.

Appointor should always be you as that is the one in control.

Why not just use a discretionary trust?

I suggest you look at trusts too.

Its crazy isn't it!

i don't think there is any law saying you must claim all deductions. But have you worked out if you keep carrying the losses forward will this save you more tax in the future than you will lose in benefits now if you minimise the deductions?

Maybe there is a way around things too. e.g You need to get rid of losses and someone needs to get rid of profits? You need to make more income for your property so maybe a company could pay rent for some part of it to get rid of the loss. The company may then get a deduction for the rent……..

You will need some good advice as some things to consider
 – what happens if one of you gets divorce
 – what happens if 1 goes bankrupt
– 1 wants out? (This will happen!). Does the house have to be sold or 1 partner buy out the other?
 – who is director?
 – who guarantees the loan?
 – no 50% CGT with a company
– what happens if 1 does more work than the other – more profit, higher 'wage' etc?

What you can do it to take her to court. Sue her for damage to your property. You will win and get a judgment against her for a sum of money. You then need to enforce the judgment. You can go back to court and get further orders to garnish her wages, sell her property, garnish bank accounts etc – but to do this you will need to find her.It is all relatively cheap to do.  But it is probably not worth doing if she has no assets or you will not be able to collect. But she will have the judgment on her credit report and it will hurt her chances of getting finance for the next 5 years.

Finally if she doesn't pay up and the judgment debt is over a certain amount – around $2700 – then you can bankrupt her.

hi Kuradji

I don't know that much about SMSFs myself, not having one. I had began to look into it, but it is so complex and fast changing it is hard to keep up.

I would recommend you do a lot more research before setting one up as you seem to be like me. You don't want to waste money setting one up to find it is no good.

for starters have a look at https://lawcentral.com.au/CreateDoc/PriceList.asp at the SMSF deeds and other documents. Sign up for free and go through the process of making a deed for free – and read all the tips along the way. Sign up for the newsletter too as almost every newsletter has further info on trusts. They are also constantly updating their deeds too. But I think you shouldn't buy it online, but use a good accountant to set it up for you. You will need someone to help you run it within the rules.

Also look at http://www.trustdeed.com.au too. They have some good strategies in their newsletters too. The principal behind it all has a long history in the SMSF business too.

Some points to consider:

By thinking about what to do for 4 months you have missed out on $5000 in rent!

If you sold and put $130,000 into your home loan you may save around $6,500 in non-deductible interest per year.

If you kept it you would get any future capital growth – now may not be a good time.

If you had the loan IO with a 100% offset account you may still have a high loan on it and it could have saved you more tax.

Looks like you have the not ideally set up either. What if you move out of this one after paying the loan down – you would have a similar problem. Far better to maintain a high loan with money in the offset.

I would probably be inclined to keep it for now. Talk to your accountant about setting it up a bit better. Eg. you could set up a LOC and use that for all expenses freeing cash to pay down your own home loan ( would be better off going into a 100% offset account!)