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Yes I've just now read about getting IP's into a SMSF, though the trust needs to be a unit trust.
Would this work??
(Assuming the property was a long term keeper)1- Buy each property in a unit trust. (where available the land tax threshold would apply each time then)
2 – Have the units owned by a FDT if positive.
or
Have the units owned by myself, bought with a banks money, if negative, to allow gearing tax benefits.
Then when property goes positive, sell units to my FDT. (Not sure what would happen here, but as the property hasn't been sold there'd be no stamp duty, though I guess the units have gone up in value so there would be a capital gains issue??)3 – Then as grey takes over black, sell the units to the SMSF.
I've been reading a lot on trusts, and must confess I'm more confused than anything!!!
On another issue, does a Trust HAVE to have it's tax done by an accountant, or is that just companies?
Terryw wrote:Unit trusts have no protection because the unit holder holds a fixed interest in the assets of the trust. But you can still obtain asset protection by having the units of the unit trust owned by a discretionary trust.
If the property was negative, using a unit trust would filter down the tax benefits. But if the units were owned by a Discretionary Trusts, wouldn't they then still get stuck inside the DT? So in the end wouldn't it just be cheaper to use a DT to begin with? Or not use a trust at all as you won't be able to claim the deductions? Assuming the property was going to be negative for a long time.
Although.. is it true that a Unit Trust will get a land tax benefit if it owns the IP?
If so would it be better to buy each property in a separate unit trust, then having all the units owned by a FDT (assuming positive here). So you'll keep the land tax down and still have flexibility in who gets the money.
