Hi,
Just starting out, so have no idea about much at all, but is this right that as losses can’t be distributed from a trust that it is better to not have neg geared property in a trust structure?Any other options?
LibraCharlie
You can have the loan in your name and the title of the property in the trusts name for neg. geared scenarios.
Then, the trust is making a profit. And you still get to claim the loss of the loan interest against your own income.
Called Hybrid Discretionary Trust.
Live, Learn and GrowLifexperience
well done lifex
but you can use a company and if structured correctly most of the running cost can be losses to the company also.
It is a simple answer but a simple structure.here to help
Holding an appreciating asset in a company (other than an active asset and residential investment properties are deemed not to be active assets) would be a terrible decision. You would loose the 50% CGT discount and pay a flat tax rate of 30% on the capital gains.
You could sell the shares in the company as opposed to selling the asset itself but you may find a vendor not willing to take on a company share as opposed to purchasing the property outright.
I heard an interesting comment about someone having a company buy an IP..they then rented it from the company, the director of the company is a nominee director (could be your accountant or solicitor) with paperwork in place ensuring the owners can do everything including dismiss the director at any stage..Supposedly good in an Asset Protection scenario as well..?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorOriginally posted by lifeX:You can have the loan in your name and the title of the property in the trusts name for neg. geared scenarios.
Then, the trust is making a profit. And you still get to claim the loss of the loan interest against your own income.
Called Hybrid Discretionary Trust.
Live, Learn and GrowLifexperience
If this structure is used, is the FHOG still able to be claimed as the loan is in my name? Or because a trust is on the title, does this make the FHOG ineligible?
Originally posted by redwing:
Supposedly good in an Asset Protection scenario as well..?Not something I would do at all. A company could be sued and there is no CGT discount. This can be done through a trust.
LibraCharlie
A loss can’t be distributed but is carried forward until it is used (Tax credits). You can get the neg. gear effect in a Hybrid trust as lifeX has described. A hybrid trust is a cross between a unit trust and a discretionary trust.
You get a loan,
buy units in the trust,
trust buys house,
Just BrieflyHope this is what you are looking for
CATA
Asset Protection Specialist
[email protected]Originally posted by Brizza:Originally posted by lifeX:You can have the loan in your name and the title of the property in the trusts name for neg. geared scenarios.
Then, the trust is making a profit. And you still get to claim the loss of the loan interest against your own income.
Called Hybrid Discretionary Trust.
Live, Learn and GrowLifexperience
If this structure is used, is the FHOG still able to be claimed as the loan is in my name? Or because a trust is on the title, does this make the FHOG ineligible?
Brizza
FHOG is not available if buying thru a trust.
Terryw
Discover Home Loans
North Sydney
[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
Hey, Thanks everyone, makes sense now! LibraCharlie
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