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Companies are not eligible for the Capital Gains Tax discount for properties held more than 12 months. Discretionary trusts will be up for land tax in some states. A company as trustee for a discretionary trust might be what you need, but if you are negative gearing the losses stay in the trust unless you have a hybrid discretionary trust. The cost of setting up a structure could eat up a lot of your $15K as well as resulting in increased ongoing fees each year.
I suggest you do more research because it does not seem as if what you have come up with is what would normally be advised
Stamp duty, legal fees, capital gains tax. Can you prepay any interest before March 09?
I'm not a broker, but I assume like me you have ratebreaker. You would need to consider the cost of altering the loan (mine says within 4 years) and whether a refinance would result in higher interest.
Assuming from your comments that you want to sell your old PPOR within 6 years unless you are planning on moving back into it periodically, possibly a simpler solution is to buy your new propertyy in your names. As long as it is not being used to produce income any expenses such as interest, rates, insurance, repairs etc get added on to the cost base. It would save you a few thousand dollars in set up fees and save ongoing accounting fees. Julia Hartmann has written in Australian Property Investor on this to reduce CGT
If your IP is residential forget it. If business property maybe but it will be costly. You are probably going to be up for CGT too
Do the unit and storage space actually form part of one lot in the strata plan (even if separated physically). If so, you would need to subdivide and would probably not be successful
There was a good article in Australian Property Magazine on this topic in August 2005. Might be a good place to start.
In the ACT you might be able to as there you are actually transferring a lease
That's right. That is a substantial problem with auctions from a buyer's perspective.
There are a number of options, but panic is not one.
How many other owners have there been since the wall was built in 1983?
Have you had a survey to establish the legal boundary of your land? ie is your neighbour correct.
Possibly you and your predecessors in title have established adverse possession. The Property Law Act provides also for relief in various instances of encroachment. Worst case scenario you could negotiate with your neighbour to purchase thta bit of land from him.
Instead of panicking see a lawyer who specialises in adverese possession
Assuming from your use of the term "family trust" that this is a discretionary trust, I sugget you read the definition of beneficiaries in the trust deed. Unless your father had some specific advice when setting up the trust to limit the beneficiaries it would be odd to limit them by excluding your children and possibly your wife as the trust would be set up to last potentially 80 years.
If they are not beneficiaries adding them as beneficiaries could constitute a resettlement and require stamp duty be paid on the value of the trust.
Depending on the ages of your children there are limits on the amount of unearned income they can receive before higher rates of tax apply. If your wife and children are potential beneficiaries you could discuss with the trustee why it might be desirable to include them in distributions. Bear in mind a discretionary trust means just that and how the benefits are distributed is at the discretion of the trustee.
When you transfer the shares to him there will be a CGT event.
Depending on what state you are in the shares might attract duty at the value of the real property.
Companies don't get the 50% CGT discount if assets are held for more than 12 months
Is it possible to set up a trust where your sibling is one of the ebneficiaries and then transfer control of the trust to the sibling at a later time
Companies do not get the capital gains tax concessions when the property is held more than 12 months.
Possibly a unit trust with a company as trustee.
What if someone's circumstances change and they want to get out. What happens if someone can't meet an ongoing financial commitment? There are a lot of issues to consider with a joint venture.
Subtract the $2 the bellboy kept from the $27 the men paid and there is $25 to the room rent.
Your agent should have multiplied the weekly rent by 52.14. Don't sweat the small stuff
I would be concerned about the appropriateness of making allegations like "he believes he was paid over $30,000 commission" on a public forum.
Simplistically the rent would be added to your income and the property expenses both cash eg interest, rates, insurance and non-cash eg depreciation, borrowing expenses (over 5 years) would be deducted. This would reduce your taxable income
eg rent $20,000
interest $30,000
rates $2,000
depreciation $10,000loss $22,000
assuming you and your husband are on 30% marginal tax rate your tax would be reduced by $6600
Is it feasible to rent out as fullyfurnished upmarket holiday accommodation during peak times?
What is the future for that part of Port Stephens?
Get a second opinion from another dentist. Ask your friends who is good and reasonably priced. Check the tax laws you might be eligible for a rebate
You need to know what the caveat is for. If it is simply noting that some money is owed that's not usually a problem, but if it is claiming ownership of the property because of a contract or an agreement etc etc the vendor really needs to sort that out before putting on ther market. If noone turned up at the auction then I would assume other people's lawyers gave similar advice to yours
If the selling agent tells you a place will rent for $X, don't accept their word. Check it yourself or get a property manager to give you an estimate. Take the neighbourhood into account.
