IS A FAMILY TRUST THE GO??? I am looking for a way to minimise my tax. My current situation is i have a residential unit (principle place of residence) purchased 3 years ago for $400,000 and a current mortgage of $340,000. My father is going to purchase my unit in Nov 2011 when he retires as an investment unit.
Therefore in 3.5 years, we will sell our unit to my father for $400,000 making no capital gains (given the current realestate market) . Thus i am looking for a way to turn my unit into an investment unit without moving out. Hence minimise my tax.
My thoughts were to move my unit into a FAMILY TRUST, (understanding that stamp duty will be payed), then rent it back from the trust. Deduction could be made like a regular investment property, however my question is this:
could the Family Trust gift the unit to my father when he retires, allowing for him to pay no stamp duty to the government, only to me to reinburse my previously payed stamp duty when setting up the trust? Are there better ways?
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