Paul,

transferring from a discretionary family trust to a hybrid one
Transferring what? Do you currently have any assets owned by the discretionary trust?

read Dale’s advice about this, but although he said it can be done, it could be dicey in regard to the closing of the first and creation of a new one
Do you remember where in the book Dale…[Read more]

Rob,

That link is for the MMX version of the Pentium. The original Pentium was from 1993.

http://www.intel.com/pressroom/kits/quickreffam.htm#pentium

GP

Marcus,

You have to know you’re going to have a refund, and state why you will and approximately how much it will be (at least you did when I had one some years ago).

And the ATO doesn’t have to grant the exemption, but if it’s for legitimate reasons, then I don’t see why they wouldn’t.

GP

Originally posted by WallFlower:
I think if a trust has a company as trustee the company is eligble for the concession

I don’t think so. Only beneficiaries receive distributions from a trust, not the trustee, and companies are not entitled to the 50% discount. Capital gain is taxed at 30% just the same as other income.

Note however that I am…[Read more]

Originally posted by kp:
why put your investments or “property for sale” in a trust apart from providing flexibility to distribute to minimise tax (except for CGT)since it doesn’t qualify for the 50% concession ?
By my understanding, profit and capital gain should not be retained in a trust (unless you want to pay tax at the top marginal rate), so…[Read more]

Mumarina,

Thanks for the article link. I’ve passed it on to a few of the others who are considering this investment.

GP

Originally posted by The Mortgage Adviser:
If there is a fire or an extended drought, your yield is gone
I haven’t read the PDS, but they did mention that it was insured for fire and a few other things. Still, I’m not sure how that would affect returns.

How do you know anyone will actually want those trees in ten years or pay the big dollars for…[Read more]

My work had a couple of financial advisers in yesterday and they were suggesting putting some money into an ATO-approved managed investment scheme in the ag industry. In this case, trees for woodchipping near Esperance in WA.

Supposedly 100% deductible up front with no CGT on maturity (not sure how that works). Independant return projections of…[Read more]

Originally posted by pumpkin:
If you purchase in tenants in common, can you specify percentage owned, so that if one earns more than the other (in different tax brackets) then the one earning less gets the majority of the profits (for tax purposes only) to reduce the tax.
I’m not an accountant, but my understanding is that income and capital gain…[Read more]

Originally posted by pumpkin:
When you say that you get taxed 100% within 12 months, what is that percentage, surely not your whole profit?
Don’t confuse taxable income with the amount of tax to pay. The 100% and 50% figures are talking about taxable income. How much tax you would then pay would depend on your marginal tax rate.

GP

Originally posted by Terryw:
So what if a new trust were formed with both parties as trustees and beneficiaries. The Capital gain could then be distributed to the new trust
This sounds back-to-front to me. You want to make the original trust (the one with the gains) a beneficiary of the new trust to avoid resettlement problems, but how does that…[Read more]

Why is it the “11 second” solution? The calculation doesn’t normally take more than 2 or 3 seconds to do. [ponder]

GP

Many of these acronyms pre-date the Web and come from the old days of bulletin boards and CompuServe.

Here’s a list of ones commonly used on CompuServe (some more commonly than others):

AAMOF – As a matter of fact
AFAICT – As far as I can tell
AFAIK – As far as I know
BRB – Be right back (during live chat)
BTW – By the way
CAM – Couldn’t agree…[Read more]

I’m not an accountant, but from my understanding…

Originally posted by dreamweaver:
I gather from some of the posts on this topic that gains made in NZ would have to remain there.
It’s not just a matter of them remaining there. They can’t be gains that you personally have made, otherwise you still have to declare them as foreign income for…[Read more]

Originally posted by The Mortgage Adviser:
I don’t consider using a company as the worst entity to hold real estate
I think it is the worst entity for holding any appreciating assets that will give capital gain, as you can’t pass the 50% CGT concession through a company.

For purely income investments it may not be such a big deal, although it is…[Read more]

Originally posted by kay henry:
I reckon where Neil went to visit was probably a town of only a couple of hundred- if that- no RE office etc- it has to be small.
I’d say so. I used to live in a NZ country town of about 3,000 and they have at least two or three RE agencies (I was there a few months ago and had a look in the windows).

GP

A similar story from NZ:

http://www.stuff.co.nz/stuff/nelsonmail/0,2106,2949011a6510,00.html

GP

Originally posted by WayupNorth:
can someone tell me whether a discretionary trust is still entitled to the 50% exemption for CGT on selling the property if the asset is held for longer than 12 months ?
My understanding is that capital gains in the trust must be distributed each year to the beneficiaries, who would be able to claim the 50%…[Read more]

Jeff,

Originally posted by jbro:
Thus any monies being put into the trust from the directors can be classed as taxable income to trust and a loss to the director that is supplying the income
I believe the idea is that you would lend money to the trust, in which case it is not taxable income and not a loss to the person lending it. It stays on the…[Read more]

Originally posted by Derek:
As to whether or not this equally applies to the general looking process – I would contend that while you are not classified as a ‘professional investor’ probably not – however when you get multiple properties then you may have a case to claim the general looking stage of research.
Thanks for your input, Derek. It would…[Read more]