Forum Replies Created
All good advice here and I need to add nothing, but as I have not posted here for a while I just wanted to.
CATA
Asset Protection Specialist
[email protected]I have not been there for a while, but believe it to be difficult to rent anything in Hervey Bay due to the fact that people are retiring there. This would lead me to believe that most people moving that way would be selling where they are and purchasing somewhere to live in Hervey Bay.
In short, moer owner’s than renters.
Just my thaughts tho. Do your own due dilligence.CATA
Asset Protection Specialist
[email protected]I am currently in talks to halve my portfolio exactly, but she wants more than her fair share considering that it comes from my hard work.
[jerry]Divorce is great, isn’t it…..
CATA
Asset Protection Specialist
[email protected]Exactly Property WA.
CATA
Asset Protection Specialist
[email protected]I believe that Ed Chan’s book has been outdated by new laws….
CATA
Asset Protection Specialist
[email protected]Exactly Richard
The stamp duty goes to The “Office of STATE Revenue”.
CATA
Asset Protection Specialist
[email protected]The short answer would be no, not much will protect you from marrage (currently finding out the hard way[wacko]) There is not much the family law courts can not access in the case of a marrage breakdown. They do however take into account the assets you come to the relationship with and the assets you build together.
Hope this helps
CATA
Asset Protection Specialist
[email protected]Stamp duty goes to the Office of State Revenue which varies from state to state.
CATA
Asset Protection Specialist
[email protected]Thanks for the online support guys and gals.
I have good days and bad days, but am looking forward to a brighter future.CATA
Asset Protection Specialist
[email protected]You are basiclly selling the property to the trust and will encur all relevant costs.
CATA
Asset Protection Specialist
[email protected]Originally posted by joshadelsa:There is a company that I have dealt with in NSW called Chan & Naylor who have developed a Trust designed specifically for the purpose of holding property called the ‘Property Investor Trust’. I believe it similar to a unit trust and actually allows you to take certain losses out of a trust which is one of the negatives of discretionary trust (can’t claim losses against personal tax returns). search their name in google to get info off their website.
Hi Joshua
The laws have changed since Ed Chan develpoed this clever marketing pitch and trust. The advantages of a special trust like this are few with IMOP more disadvantages that are not so clear.
This trust is basiclly a hybrid trust with some differences, but the trick is with a trust that is not a typical trust, you will need to use Chan & Naylor for your accounting, no matter what they charge because no one else knows how the trust works.
You can not take losses out of a trust as they are quarantined in the trust untill it makes a profit. The trick is to have the big expenses outside the trust which can be done with either discretionary or hybrid trust, or to have a positive investment.
I am not a fan of this type of trust but do your own due dilligenge.
CATA
Asset Protection Specialist
[email protected]Originally posted by doublek:how difficuilt is it to get a trust?
if you are investing in your 1st IP and plan to invest more in the future is everything you invest in go under the first trust fund you open or do you need more than one eg: 1 trust for each property, or does your whole IP portfolio go into the 1 trust
thanx
Every stratagie has pros and cons, you will need to speak to someone who has a good understanding of why structuring is important. There is plenty of info on this forum so do a serch and find some names of books and other sources of info.
Find out what you can for free before spending some money.
Paul
You will not get the FHOG using a trust as it needs to be a PPOR. If the property is owned by a trust it will not be a PPOR.
CATA
Asset Protection Specialist
[email protected]In my opinion, you will need to define your Unique Selling Position (USP). In other words, why should I go to get fish and chips from you instead of down the road?
This USP should have NOTHING to do with price points. Not that pricing is not important, but what is so special about your store, and use it in your marketing.
CATA
Asset Protection Specialist
[email protected]Bulletproof Asset Protetion – Ed Burton
Trust Magic – Dale GGDepends on what you want to do. There is plenty of info on this site if you do a search also.
CATA
Asset Protection Specialist
[email protected]A bonus for Queensland investors as entities are not grouped (yet anyway) for land tax purposes.
CATA
Asset Protection Specialist
[email protected]Originally posted by mcdeyess:Hi all,
I have been looking into how trusts work so I have some idea of what is going on when I meet with my accountant next month. Many thanks to Cata and TerryW in particular for their previous posts, these have been most helpful in getting some understanding of discretionary and Hybrid trusts.
NO PROBLEMS, THAT IS WHAT WE ARE HERE FOR.
Allow me to paint the following scenario. I am the trustee of a discretionary trust and take a loan out for $XXXXXX and purchase a property in the name of the Trust (is that how it works?).
YOU WILL NEED TO GET THE MONEY INTO THE TRUST SOMEHOW, EITHER GIFTING OR LOANING THE MONEY TO THE TRUST. IF USING A HYBRID DISCRETIONARY TRUST, YOU PURCHACE SPECIAL INCOME UNITS IN THE TRUST.
From a tax perspective the trust has the income from rent and can claim depreciation, rates and all those other expenses. Any profit can be distributed to my partner (she has the lower tax rate). However I am paying the loan. Is the interest on this tax deductible?
NO FOR GIFTING MONEY TO A DISCRETIONARY, YES FOR LOANING THE MONEY TO THE DISCRETIONARY TRUST, YES FOR A HYBRID DISCRETIONARY TRUST.
(I don’t own the property the trust does)
I understand that discretionary trusts are unable to distribute a loss (this is why negative gearing doesn’t work the same in the trust) but you can use tax credits further down the track when you do make a profit. YES THIS IS AN OPTION, BUT NOT THE BEST ONE IMOPAS IT REDUCES CASHFLOW.Do you fill out a tax return for the trust as well as your individual?
YES AS A TRUST IS A SEPERATE ENTITY.Hope this helps
CATA
Asset Protection Specialist
[email protected]Banks and the ATO have no issues with trusts as long as they are used within the law.
As for the Proterty Investors Trust- try the search function and remember that the laws have changed since Ed Chan wrote that book.
CATA
Asset Protection Specialist
[email protected]Originally posted by elkam:When I asked how can you avoid paying CGT they said that as a non resident you can accumulate losses and use these to offset CGs.
This can be done as a resident. When using a discretionary trust losses are stuck in the trust untill the trust makes a profit eg CG or in your own name with a amendment.
I am no accountant, but I believe the CGT will be paid, and if you arein a country with a double tax agreement with Aus then you may be able to do it in your tax return in the country you are in.
Get an accountant that has expirence in this area. It may cost you more in fees but it could also save you more in tax.
Hope it helps
CATA
Asset Protection Specialist
[email protected]If you are investing in Australia, and living in Aus, be very careful with the use of offshore structures. The ATO frowns on this and if you get audited, well good luck.
The only reason for the use of offshore structures is for tax avoidence.
CATA
Asset Protection Specialist
[email protected]I believe that a SMSF can invest in units from a hybrid trust and the rest of the money comming from yourself.
However I am not lisenced in this area, so do your own research.
CATA
Asset Protection Specialist
[email protected]
