Hi Everyone,
I would like to hear about the disadvantages and advantages of buying your PPOR through a trust.
Has anyone done it?
Can the trust charge yourself interest which is tax deductable?
Can anyone separate the facts from the rumours?
Tax implications, long and short term?
The daily & weekly operations of the trust and how to manage it?I think this could be a very interesting topic.
Regards
FreedomI beleive it can be done, but haven’t done it myself.
Advantages
-Can claim expenses against other income, ie negative gear
-Asset proection
-can also furnish the property, and claim or depreciate almost everything you buy!!!Disadvantages
-ATO is cracking down?? (I recall something from a few years ago, maybe a tax ruling, about this and unit trusts??)
-You must pay market rent, so with increases the property will become positively geared eventually and the trust will then pay tax on the rent
-You may want to sell down the track, and will have to pay CGT
-There is no land tax exemption for trusts (in most states?)I wonder what some good accountants would say (like Dale GG). Chris Batten says in one of his books that he generally recommends the PPOR be purchased in individual names.
Terryw
[email protected]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
Here is a link to a tax ruling on the ATO site:
http://law.ato.gov.au/atolaw/view.htm?locid='TXR/TR200218/NAT/ATOIncome tax: home loan unit trust arrangement
TR 2002/18Terryw
[email protected]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
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