Forum Replies Created
Good point LifeX, but from what I understand this only effects property in VIC and our units are in Tassie. Please correct me if Im wrong…
I hope this doesnt happen though and surprises me as most of the ‘pollies’ hold their investments in the same structure. I hope and believe they will have to accept some of the exemptions/changes the REIV have suggested.AP
How this for an idea…?
The Trust purchased the units off the plan from us then no stamp duty would be payable… Any thoughts?
APThanks CATA,
I imagine then selling the land at market would be better then, but then it would have to be subdivided first before it could buy it..?
AP
And also importantly I would like to having a different entity (a trust) owning the new units, I thought the trust could buy the land and then build. Without the separate titles the trust cant buy the land on its own…
The reason why I’m interested is because as soon as they are on their own title they have a real value should I choose to sell them, and additionally just to understand the process…
Hi Tonny
Yes, I was talking about the units issued by the HDT to claim as a deduction.
The reason for my thinking of redeeming them when positive is to pay some of the principle back, but I see your point of loosing deductability – Never looked at at it this way.
Adam
Coasty,
Thanks again… The $5K is as you explained: Net Profit.
I now understand all (well maybe not all, but a whole lot more.[biggrin]
Cheers,
Adam
Thanks coasty,
Excuse my ignorance, but does this mean that I would then have to fund $5K out of my own pocket and therefore be tax deductable? And what happens to the $5K of depreciation that is still in the trust…? Could this then be distributed to other beneficaries?
Adam
Thanks again Terryw,
I understand mostly now. I think I might sit down and read Dale G’s “Trust Magic” and then revisit this to more fully understand my position.
[cap]
AdanmThanks Terryw,
Hmmm… If this is the case, I cant see the advantage in the trust…
Another example: I have a group of residential units in my own name (a ‘no no’ i know) and works to my advange over a trust. The figures go something like this:
Rental Income: $20K
Interest and Expenses: $20K
Depreciation on Units on Depreciation Schedule: $5KSo therefore I get a $5,000 tax deduction on my personal income… If this were in a trust, I would not be able to pass on this tax deduction to myself….
If I understand this correctly (and im not sure I do) it means I am better off having the units in my own name…
Any thoughts or clarifications??
Thanks
Adam
