Forum Replies Created
I think even a business should be in a trust. You can register a trading name for the trust and this will give you great flexibility.
There is no “One size fits all” for trust structures as everyone’s personal circumstances are different.
Generally I would agree with Terry.
Let me know if I can help.CATA
Asset Protection Specialist
[email protected]No need to unless $50k of profit per year is reached.
CATA
Asset Protection Specialist
[email protected]These type of returns are possible.
Do you know what a Ponzi scam is? If so, make sure it is not one of there type of deals as the cash will vanish.
This site will give you an idea of a Ponvi scheme.
http://home.nycap.rr.com/useless/ponzi/CATA
Asset Protection Specialist
[email protected]That’s a headake. Just do your due dilligence before settlement. If not you might be in court trying to get costs, and costing you court fees as well.
CATA
Asset Protection Specialist
[email protected]Originally posted by reidpg:Andy,
Although Trust deeds are pretty standard. It was simple for my account in Sydney to arrange to set up a Discretionary Trust and Trustee Company (would recommend that as you can then control what the trust invests in rather than Trustees)The common misconseption it that trust deeds are standard. They are as simillar ar a Commodore and a Falcon, both cars but that’s about where the similarities end.
It is simple for an accountant because they refer the work to a legal profesional, but your recommendtion is the right one. A trustee company allows you to control everything but own nothing.
CATA
Asset Protection Specialist
[email protected]A good one for your accountant to answer.
I believe it comes back to what the money is used for.
eg. You owe $200k and borrow another $100k for income producing assets (shares, IP or whatever).
Total borrowings are $300k with 2/3 non deductable debt (PPOR) and 1/3 deductable debt (for investment). So 1/3 of the intrest payments (not principle payments) are deductible against your income.IMOP it dosn’t matter where the money comes from as long as it is for income producing assets it is deductible. Keep in mind that you will need to work out the intrest portion for the investment (or your accountant will) for your tax return.
CATA
Asset Protection Specialist
[email protected]Hi Elkam
I would not use a unit trust to purchase property. The simple answer is because if I had $1 mll in property inside a unit trust, and there are two units from the trust, What is each unit worth?
$500 000. It’s far to easy to determin who owns what in this type of structure and it give little asset protection. Unit trusts were just deemed a special trust. This means the land tax loophope is now closed from a unit trust.Needless to say, a unit trust has it’s place but not for personal property investing IMOP.
Hi Toni
Do you have enough in your superfund to purchase an IP?
This will reduce your CGT when you sell and save the trouble of transfering the profits into the superfund later. The downside is that a superfund can not borrow money.A discretionary trust can distribute all income including CGT. Keep in mind that if the money is distributed from the trust before June 30 the tax is payed at the beneficiaries marginal tax rate.
You will get the 50% CGT discount and then be able to distrubute the rest to the lowest income earners. Using this stratagie there should be no more than 30% tax on the taxable portion of the profits(maximum).If you can understand this then you will understand the extra benifits using a discretionary trust.
There is also Asset Protection and Estate Planning benifits of a trust that must be taken into consideration.
CATA
Asset Protection Specialist
[email protected]You could turn it back on the tennants.
If the IP was clean and tidy there would be nothing for the ants to eat and they would go elsewhere to find food.
If you have had the pest controlers in and had the IP sprayed, there should be no reason for the ants to be there unless the tennants are grots.
Just my opinion.CATA
Asset Protection Specialist
[email protected]Hi Michelle
Not worth the effort IMOP. A new trust would be easier and probably cheaper.
Alot of amendments would be needed and then to resettle the trust. I’m having nightmares just thinking about it.[weird]
CATA
Asset Protection Specialist
[email protected]HDT- Hybrid Discretionary Trust
I work for myself and no I don’t have a website. E-mail me if you want to chat.
CATA
Asset Protection Specialist
[email protected]I use the same corporate trustee if purchasing another IP. If in business I would set up another corporate trustee.
Save your money and use the same trustee.
I have not heard of the surcharge but if it is on a discretionary trust then any other trust you would use for property investing would have a surcharge also IMOP.CATA
Asset Protection Specialist
[email protected]This would need someone who knows about US laws as well. I am not familliar with these laws but here are my opinions.
I will assume you are an Aussie resident investing in US property in your personal name.
Setting a structure in place in Aus. and transfering the IP into the trust may incur CGT, as you will need to sell the IP to the trust(payable at your next tax return).
You will need to weigh the costs now to sell the IP to the trust against the costs involved if/when you sell the IP in the future, keeping in mind the possibility of litigation in your personal situation.
Hope this helps
CATA
Asset Protection Specialist
[email protected]Selling your IP to the trust is like seling it to someone else. There will be CGT and stamp duty involved, then to sell it again and incur these costs again.
If you want to sell the IP, sell it in your name and then set up a structure before you invest in your next deal. CGT is calculated in your next tax return.
This is why structuring before you invest in vital. The correct structure can cost initally, but save thousands in the future.
CATA
Asset Protection Specialist
[email protected]Thanks stuck-at-two but I don’t drink beer.
How about a bottle of red?
Not everything is about the money.[thumbsupanim]CATA
Asset Protection Specialist
[email protected]Originally posted by Terryw:If before going bankrupt they sold their house to someone (including a trust) within a certain time frame, this sale can be reversed. This time frame was 6 months but recently the law changed on this – think now 5 years.
5 years before the commencement of the bankruptcy unless the transferee proves that the bankrupt was not insolvent at the time of the transaction. Otherwise 2 years.
CATA
Asset Protection Specialist
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