I went to my accountant to do my tax and discussed with him about setting up a trust for property investment, basically transferring my current PP into the trust so that it will become my IP then use the equity and buy a new PP.
I got the impression that he hasn't had a lot of experience or exposure in this area so I am not positive whether to use him to setup a trust that will do what I want. The plan is to continue purchasing property over the next 10 years so I am looking for a long term setup.
so the question…does anyone know of some reputable companies who deal specifically in trust setups for property investment that could be recommended????
thanks
Where are you based, Anthony?
Also, the plan sounds good. I presume you will be maximising your borrowings in the trust to buy the property off you at market value. There should not be any CGT (but duty will be payable) as the property has presumably been your main residence since its original acquisition. If the property is negatively geared in the trust, beware that any tax loss incurred is trapped in the trust and various tests under the trust loss provisions will need to be passed before those carried forward tax losses can be recouped in future. Then there are issues associated with making a Family Trust Election for the trust to safeguard those losses in the interim, etc, etc.
Depending on where you are, I can most certainly recommend a lawyer to set up the trust.
Eddie
[email protected]I am based in Victoria, a recommendation would be great!
try http://www.gatherumgoss.com
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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