gmh454
Thanks for your input into this. As you would know the onus of proof is on the taxpayer to defend the structure & strategies they use – even if this advice comes from a professional.
I have “raved” on about this issue because it seems from reading threads on the forum that people are setting up trusts at minimal costs & it worries me they…[Read more]

Mel
You are not comparing apples with apples.The loss from negative gearing for individuals is able to be offset against other income – no problem. For trusts, including hybrid trusts, losses cannot be dsitributed to unit holders/beneficiaries & are c/fwd in the trust. The unit holders may be able to claim an interest deduction for their…[Read more]

We have 42 – combination of buy/hold & wraps – current target 2 buys/mth.

Try Depreciator – you can look up their details at http://www.count.com.au & go to 3rd party services. Depreciator have a fixed fee & actually inspect the property in preparing the report which is vital. Probably not the cheapest but certainly reliable & trustworthy.
Remember, the ATO do not have to accept a quantity surveyors opinions on depreciable…[Read more]

For Mel et al
Yes I know what a Hybrid Trust and/or unit trust is and yes you can “construct” these so that negative gearing is achieved for a trust asset individually.
However, the ATO have a provision called Part IVA that applies to schemes entered into with the sole or dominant purpose of obtaining a tax benefit.
My educated view is that using…[Read more]

Rodders
Perhaps your opening statement should have read:
“I am an accountant, and you would be stunned at how litte I know”
Nobody likes having their profession criticised.
I hope you find a successful career change and Merry Xmas !!!!
JB

Rodders
Being a business services/tax specialist I take professional offence at your comments. You cannot generalise the accounting industry this way & there are many good practices & partners within them (a lot of these are my friends) who are more competent at advising what to do with your wealth than anyone I know. Of course there are not so…[Read more]

Some people are very defensive in this forum aren’t they. That’s OK – stimulates the thinking !!!
JB

Mel
No lender can provide this sort of surety. I have researched this area a lot and have advice from the NTAA, the ATO & Deloittes advising that you would be breaching the borrowing provisions in SIS if the asset was charged in any way. I intend contacting Barbara Smith to clarify her position in this regard. Will let the forum know if my view…[Read more]

I would consider leaving the funds in the company & buying the property in the company name (provided the company doesn’t operate a business). Company has no 50% CGT discount, however, if you are personally 48.5% the comparative rate of tax on CG is 24.25% vs 30% for the company which isn’t enough difference to worry about – particularly when you…[Read more]

If you are going to set up a trust use a corporate trustee & get someone qualified to set it up for you. Did you know the most powerful individual/s in a trust are the principal/appointor, ie, those that have the power to remove/replace the trustee. Do you know the matrimonial implications of having the wrong person appointed to this role ??? Did…[Read more]

Go to the ATO website and you can down load it on line – much quicker & easier !!!!
JB

Beware of the private ruling if you are going to lodge it yourself. Once issued by the ATO it is binding on you even if you don’t agree with their logic. You also bring attention to yourself and my recommendation would be to pay for the advice. Personally I would suggest you leave your SMSF out of your property portfolio & use it to diversify into…[Read more]

Terry
Chris Batten is a lawyer and the strategy he suggests requires the property to be mortgage free before the super fund acquires units. So you would have other security to support the finance.
I’m not sure what Barbara Smith was suggesting,however, the super fund cannot have an interest in a property that has any sort of mortgage attached…[Read more]

Sounds brilliant but unfortunately this will not work. The two unit trusts are related parties and the investment in their units is limited to 5% of the super funds total assets. You would be breaching the in house assets test and the penalties are quite severe.
You need to discuss your self managed super fund strategies with a good accountant as…[Read more]

Terry
The most sound basis for determining a businesses value is the return on investment calculation. You take the net profit as disclosed and add back any expenses that would not be relevant to a purchaser, eg, owners wages, interest paid, owners super, owners motor vehicle, etc.
Then you determine a reasonable remuneration for the owners labour…[Read more]

I’m not sure whether this is appropriate, however, we are accountants in Inverell, NSW. We are heavily into property investing and advising, understand and use wraps, lease options, etc. My partner is a financial planner in the business, I am a tax accountant & we think we form a formidable team.
If anyone would like to use our services we have a…[Read more]