I have read a bit about Trusts and have some questions about a hybrid discretionary trust with a comapny trustee
say i borrow $300,000 from a bank at 7 1/2 percent then buy units in a hybrid trust,the trust then buys the property at $290,000 with $10,000 costs
it gets $270 per week rent or $300 per week fully furnished
is it the same as a normal investment where the rent gets paid to a property manager each fortnight/month
then the trust pays me the profits each month so i can pay the interest only loan
what about the shortfall?
do i have to gift it to the trust, how about rates, insurance, real estate fees, repairs?
if i have acompany can i have an AGM?
Do i pay myself or partner a wage for doing the boos etc and if so do i have to pay super, compensation etc, or do ipay just enough to do without paying tax?
Sorry for so many questions but i’m thinking others would be interested, can anyone post some helpful advise here?
Wasp
**************************************************Its not what you earn but what you do with what you earn
The trust would get all the rent either directly or from the proeprty manager. You would claim the deduction of interest against all of your personal income, and the trust would make distributions of the profit to you. The trust should be making a profit as the major expense, interest, is being paid by you personally.
If you pay yourself a wage, then you would have to declare it as income, so there may be no real point. It would be better, probably, to have hte trust make a larger profit so this could be distributed to one of the beneficiaries.
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
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