mantismm wrote:
Hi everyone,I purchased an vacant unimproved lot adjacent to my primary residence this year. I may sell it one day for profit, on which I would certainly pay CGT. My question is: can I deduct the legal and title fees I incurred in buying the property, since it is an investment?Thanks,Kevin

No – the costs will be included in the…[Read more]

You mentioned you have a current PPOR, so the old PPOR will be subject to CGT.  The CGT will be apportioned, however, to the CGT attributable to from the time you bought the new place to when you sell, relative to the total ownership period of the property.  Also, you will most probably be entitled to the 50% CGT discount.  Yes, that will be a go…[Read more]

Hi ThomasEmail me. In any case, I think hybrid trusts are probably not worth the effort relative to the risks and complexities inherent in them.Eddieeddiec@bigpond.net.au

There are "standard" trusts that are more or less off the shelf and there are more specialised trusts where the deed is specifically drafted for a particular purpose. What exactly are you after? Also, is this just a private trust for your family or say a unit trust for multiple investors?Eddieeddiec@bigpond.net.au

What is the approximate dollar value of the property?Eddieeddiec@bigpond.net.au

PS – even so, I would still check with FIRB to see if a discretionary trust is acceptable on an anonymous basis.  Not familiar with the FIRB law myself but there are far reaching tracing provisions in the tax law that would drag related entities, including discretionary trusts, into various rules.  I would imagine FIRB wouldn't be too d…[Read more]

I agree.  Under a bare trust, you retain beneficial interest in the property and I doubt FIRB would permit that.  On the other hand, if you are using a discretionary trust under which there is generally no presently entitled beneficiary at any one time (unless the trustee makes a distribution of corpus), it's an entirely different proposition f…[Read more]

The difference in GST treatment between the two scenarios is due to the concept of "enterprise" in the GST Act.If a trust buys land, builds a house on it, and sells it to someone (whether related or otherwise), the series of activities will likely be treated as an "enterprise" under section 9-20 of the GST Act.  One of the key criteria for GST to…[Read more]

I agree.  You will be taken as if you have on-lent your half of the loan proceeds to your wife to enable her to buy the property.  In your tax return, you need to show an interest income and interest deduction of the same amount (being the interest charged by the bank on your half of the loan).  Your wife will then claim the interest on the en…[Read more]

Provided that the corporate trustee was incorporated in Australia, the trust will be an Australian tax resident.  This is so regardless of whether the shareholders of the corporate trustee are Australian tax residents or otherwise.  Not sure about the FIRB requirements either but if you are the appointor of the trust, you may substitute the t…[Read more]

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Linar wrote:
I have a CGT questionIf I have a property in a trust that has incurred several losses over the years, mainly through negatively gearing, can see a property in that trust for a profit and offset any CGT against the losses?  Or can I only offset capital gains against capital losses?CheersK

Also need to ensure that the trust has made…[Read more]

Terryw wrote:
Yes, you can reborrow the $10k. The interest would be attributed to the new property. If you are using a trust, then you would lend the trust the money and charge it the same interest as your loan and the trust gets to claim the interest in its tax return.

Speaking like an accountant.  Well said, Terry. I do generally recommend a…[Read more]

When was the book published?Eddieeddiec@bigpond.net.au

Scott No Mates wrote:
Consider setting up your own smsf – salary sacrifice into that and use the funds at some point to purchase an IP. Set up your own IT company and have it as the contractor – then split your income with the +1.It may pay to see an accountant/financial planner to discuss strategies applicable to your situation.

Both good…[Read more]

I am based in Brisbane but this forum is more like a hobby for me than a marketing tool anyway. Good luck with your investments!Eddieeddiec@bigpond.net.au

Thanks for the vote of confidence, Terry! Yes, of course – more than happy to help. Eddieeddiec@bigpond.net.au

daniellee wrote:
Hi, EddiecThe accountant is a CPA, so that helps in this case.Good to know that an income loss can be offset again capital gains.One more question: Does making a Family Trust Election have any disadvantages, in terms of limiting who the beneficiaries are? Or it has absolutely no effect what so ever on the Trust as a…[Read more]

Terryw wrote:
Thanks again Eddie

My pleasure as always, Terry! Eddieeddiec@bigpond.net.au

Or the plumber with a leaky tap at home – speaking of which, I haven't lodged my own tax return for 2008 yet! Eddieeddiec@bigpond.net.au