I am looking to buy my 1st IP in country NSW. I want to set up the structure of the investment correctly from day one and it looks as though buying via a hybrid discretionary trust would allow for asset protection, quarantining of negative gearing, refinancing and flexible distributions of income and capital in the future.
Fees to set up the structure of the trust initially as well annual fees seem to be quite high and I’m not sure if it is worth it (I am single but in the highest tax bracket).
My next query stems from the fact that I may be working overseas for some time from next year but still have the rental income from the IP ticking over (with the intention to purchase more IP’s). I am not sure what my tax liability would be.
Ultimately I’d like to retire under a coconut tree somewhere in Asia and live off of the rental income from the Aust properties I will have, but I need to have things sorted at the beginning to enable this to happen.
Cheers
[biggrin]Hi Monster
The fees can be high for setting a structure in place, but this is a one of expense(for each trust).Ongoing fees should not be too much, a tax return ect. This is a choice you must make, Is it worth the potential risk? Pay now (for trust) and save later (potential law suits and tax). I like trusts!
In what country are you a resident for tax purposes. This will give you an idea of tax liability. As you are taxed in the country you reside.
Hope this helps
CATA
Asset Protection Specialist
[email protected]Cata,
I am being quoted a fee of abt $1500 all up to start up the hybrid discretionary trust and min $1100 annually therefter. Does this sound too much?
I am currently a resident for tax purposes but i read somewhere that if you leave Aust. (am thinkking Singapore or the Gulf) for good and become a non- resident when you leave you are up for a capital gains tax on the market value of your property. This makes no sense to me if it is true.
[build]
_monsterIs the $1500 for a company as trustee and a hybrid trust, or just a hybrid trust?
Minimum of $1100 in fees/yr sounds odd. What if it dosen’t do anything?
I believe that the CGT issues you refer to are for houses that are NOT in Australia. Australian properties are not affected.
CATA
Asset Protection Specialist
[email protected]
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