Sorry Terry but you are in error, no individual can be a sole trustee since 1999 when the SLAA Act No 3 was itroduced.
If the trustees are persons there must be a minimum of two.
You have highlighted the problems of non corporate trustees – do not use personal trustees for a SMSF – EVER.
In the case you mention had the trustee been a company it…[Read more]

Hey Brizza
Do not buy any property in your own name unles you want to leave it unprotected from crditors and lawyers who want to screw you over. The other reason is if you buy in your own name you can NEVER transfer it into your SMSF because its poisoned.
Trusts are can be pretty simple thats why the Smart Money uses them they ar also cheap from…[Read more]

Hi Benny
Do not use either: a company can be OK but only if you buy land/property as trading stock, develop and sell (not hold) and want to pay a flat 30% tax from the first dollar but this is only the PRIMARY TAX, there are more tax nasties coming later.
The best vehicle now IF you are a resident is a SMSF
The amateurs’ will tell you, you c…[Read more]

Hi All
This is a mixture.
Repairs and renos are deductible particularly if documenmted as “expenses incurred for preparation of the property for rental purposes”
Painting the interior of the house OK as above
Installing two split system aircons NO this is an iprovement and is added to CGT cost based and depreciated over time you need a…[Read more]

Hi All
Redwood and Richard are correct,
Q: The issues are 1. who would buy property in a compsny?
A: A dumb person because you lose the 50% CGT discount available to individuls, partnerships and trusts (inxl SMSF at 33%)
Rule 1 NEVER buy any growth asset in a company.
Next Q
2. is the property commercial or used in a business carried on by a SMSF…[Read more]

Hi Waz and All
Re: Unit Trusts and Land Tax
If you have the correct documents you can gain the land tax Threshold in NSW and in other states as they all have similar rules.
It is based on facts not opinions as the recent case below illustrates. Remember also that land tax paid under state law is a deuctible expense unedr federal law so it gets…[Read more]

Hi MkBonline
You need to understand the definition of a "Common Law Employee" and make sure that you DONT have one of those and have a written binding contract which is for a “desired outcome” and which includes several other important provisions.
Then you can make a move, – and don't let the lawyers fool you and say Its Too Hard and expensive -…[Read more]

Hi Peanut/Catalyst and All

Do not listen to the ATO BS
The last case on this was in 1987 which the ATO LOST !!!!!

Go read Janmor Nominees – this case is still THE LAW.
FEDERAL COURT OF AUSTRALIA
Re: COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA
And: JANMOR NOMINEES PTY. LTD. (AS TRUSTEE OF THE J. REDMAN FAMILY TRUST)
Nos. VG386 and…[Read more]

Hi Bennyhub
Do not ever – never put you properties into a company unless you are a developer and you buy land as trading stock for improvement and resale.
You immediately lose the 50% CGT discount.
You should use your company as a trustee for a Fixed Unit Trust and also retain the ability to legally move your property to a SMSF later.
If you are…[Read more]

Hi Chris11 and All,
This demonstrates what we should all know.
It's paramount to PLAN CAREFULLY before you make a decision and/or sign anything.
I NSW and QLD my understanding is the duty liability arises at the date the contract is signed, not the date of settlement.
Have a look at QLD Duty Ruling DA016.1.1 which supports this view.
Another…[Read more]

Hi Darryl, Terry and All
No, it is not against the law to provide legal advice.
It is only illegal to charge a fee for doing so.
Anyone can give as much free advice as they choose. The legal profession act in NSW and other states only proscribes a non legal person charging a fee,
This is because lawyers are all mostly about money, and what they…[Read more]

Hi Terry & All

Terry I did not mention SMSF at all unless you can point it out for me?

We have been establishing trusts of all kinds since 1978 including some we have designed ourselves such as our Fintel Group Pty. Ltd. TEBL Trust™ in 2004 and a joint SMSF-Unit Trust in a single document in 1995. Our TEBL Trust™ can produce after tax profit…[Read more]

Anthony K
Hi ystress and All
I agree setting up more than one fund is more expensive, I prefer this idea.
Use a single SMSF and bare Trust and have two separate loans.
This means that you only need two companies, a SPTC and a standard co. for the holding trust.
Asic fees on setup $433.00 each, and on Annual Review $43.00 + $230.
Now you are all…[Read more]

Hi All
Yes,
Darryl is right
always go first to a lawyer as they have insurance to protect your position,
They tell you they are experts but they can still get it wrong, and
Not many law firms have experience in depth in SMSF law because 99% only just discovered them.
Ask John Symonds about lawyers, He is having to sue Gadens for $11M,
 because…[Read more]

Hi Aiden and All

You have three basic queries,
2 Objective
1 Subjective

The 1st two
1. Don’t buy in own name/s
2. Buy land and build
3. subjective: Positive v Negative
Depends on you financial position to decide which is best for You
A FREE TIP
Your personal exit strategy is predicated on your entry decisions – it’s your only time to do it…[Read more]

Regards to All
Anthony K
Hi Lila 77 and All,

I see you are past retirement Lila (77) or your still a young filly?
Congratulations of your investment progress,
Don't know where your $10K has gone Lila but here are some points to note.

1. Don't get all your loan money from one lender, Why?
Because all your assets are tied up and if you get into…[Read more]

Hi crj and All

You are spot on crj and the ATO will just send an assessment with penalties and the Obeids’ will have to fight them in court and try to prove they do not owe the tax.
They are all up the proverbial S*** creek.
Do you remember Offset Alpine ?
The 3 major players involved were Graham Richardson, Rene Rivkin and Trevor Kennedy who…[Read more]

Hi Tony Zorro and All
What a great name you have Tony,

My interest is through property structuring  with heavy emphasis on SMSF involvement and been establishing/advising on them since 1978.
As you know Tony there is a view that leasehold is an inferior product, whether its motels, hotels or Child care many prefer the freehold but that's not my…[Read more]

Hi All
Just noticed a small typo when I checked  my previous notes on 3/03/2013 reproduced below:.

You would need to study S71 of Sub-division C of SISA, –  In House Assets, and the anti-avoidance provisions in that section, also
SISR 13.3A, SISR 13.22C and D
SISA Sections
S52, S62, S65, S70, S109 and

IT IS HERE
SISA S173, Special Income…[Read more]

Hi again All
Sorry I have been away and not contributing. Just busy. here are some ideas and comments for your forum from Anthony K.
Response to Property Investors
Problem = Property Development under SMSF.

Response 1. JHAC with $50K in SMSF – Thinking of Syndicate for the development.
Here are my suggestions and comments.
Suggestion 1. Think…[Read more]