Forum Replies Created
Hi
You can now purchase property in your Superfund thanks to new Instalment Warrants which have now been ok'd by the ATO (as long as they are set up properly!).
If you have a suitable amount already in Super you can buy property with these warrants and gain the advantage of paying no tax in retirement and the interest rates on loans for these properties are very competitive and in most cases no personal quarantees are required.
If you want more info please pm me as I can give you loads more!
Regards,
Alysha
Hi DIY
You do use the trustee company name on the title, as the company is trustee for the trust the two are entertwined. You can purchase in the name of the trustee co as ATF the trust, but a lot of places pefer just the trustee company.
As for the investment company/trust set up query – your thoughts are generally what a hybrid trust does. You set up a trust with a trustee company and then trust issues units to the individuals and these units enable the unit holders to claim the negative gearing and the interest is claimed in their personal names. Any income for this property (per the units) if the trust makes a profit is distributed to the unit holders also. Other income not per the units is treated as discretionery and distribued in the most advantageous way.
If you were purchasing the property with someone other than a partner a unit trust would be the way to go but where a hybrid trust has the unit advantage with discretionery powers the plain unit trust does not, if the properties became positively gearing the income would still have to be distributed per the units whereas with a hybrid trust if the property became positively geared once the units are redeemed the trust kind of reverts to a discretionery trust and the income distributed in the most advantageous way.
Hope this jargon makes some sense to you!
Alysha
You can use any type of account, it's just a matter of shopping around for what is best for you. It does not need to be a business account, it can be anything.
Alysha
Hi
Transferrng current properties into a trust will have stamp duty and potential CGT issues so he should get some advise and possible speak to a legal advisor before doing so as to what his other options are regarding a will etc..
You really shouldnt have your PPOR in a trust unless you plan on using this as in investment propery in the next few years. You also have to be careful about paying the trust market value of rent and you need to be buying other investments within that trust so that it remains a trust by definition.
I think his best bet if he wants to choose where certain assets go is to speak to a lawyer that specialises in these type cases.
Regards,
Alysha
Hi!
Generally borrowing costs are amortised over 5 years or the life of the loan, whichever is shorter. The old borrowing costs on the loan you are paying out that you will currently be claiming over 5 years are amortised in full the year that you refinanced.
Regards,
Alysha
If the property is bought through a Hybrid Trust then whoever is issued the Special Income Units is the person that benefits from the negative gearing. Generally the higher income earner as they get the biggest advantage tax wise.
Regards,
Alysha
Also, CMR & Assoc. in Melbourne are good, just another suggestion.
Alysha
Hi!
I actually work there and am very happy to give you more information, if you email me at [email protected] I can tell you anything you need to know.
Kindest regards,
Alysha
