Family Trust or under my own name?

Viewing 5 posts - 1 through 5 (of 5 total)

Suri007
Participant
@suri007
Join Date: 2012
Post Count: 21
March 31, 2015 - 9:36 am
Hello,
I have a questions regarding how to structure investments in property.
I work and make a pretty decent income but I am consulting which means I could be out of a job in next to no time.
I want to get into property again and am not sure how to structure my investments to reap negative gearing benefits of my income while I hold a job and also distribute my income to say my daughter and mum, to minimize tax. I guess I want the best of both worlds. Can you please give me some advice on this or recommend me to speak to someone who can give me advice over the phone – even if there is a small fee I don’t mind paying but I want to get the structure right before I make a move. Thank you in advance.
RPI
Participant
@rpi
Join Date: 2012
Post Count: 308
April 3, 2015 - 8:25 pm
There are multiple ways you can structure but it can be hard to setup to get the best of both worlds. Also the state that your property is in can have vast differences in land tax liabilities for the structures. Speaking to a lawyer who practices in the state you are buying in and who has a specialty in this area is the way to go.
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
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Property Lawyer & Town Planner
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 4, 2015 - 10:07 am
I charge $550 for structure consults for non clients. There is no simple yes or no answer, but if you want to claim negative gearing you will have to own the property, or the units in a unit trust. To be able to claim the interest you must have a right to the income and capital.
Unless your daughter is 18+ she could only earn $416 pa and not pay tax. Any more than this and the rate jumps to 66%.
There are still of lot of ways to structure a property effectively where it is owned by an individual. See my old newsletters for some articles.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Captain Risk0
Participant
@worked
Join Date: 2015
Post Count: 14
April 5, 2015 - 1:30 pm
Hi,
Haven’t you just answered your own question Suri? If its a negatively geared property how is that going to save on tax if there is no income to distribute to your family? I don’t think you get the 50% CGT if your property is in a trust either.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
April 5, 2015 - 1:36 pm
Yes trusts do get access to the 50% CGT discount – or the beneneficiary will if an individual.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au