[]Melanie Hi, no I’m not Bne based, actually on the Sunshine Coast. How do you know of Dymphna Boholt?

[][]Bad new all round guys….no tax relief for adoption (at least none that I know). Trust me if there was I have a teenager going cheap.

CGT relief in Trusts – to answer Michael’s question. In a trust you can still access the 12 month 50% reduction in CGT, in a company you can’t.

Example…buy for $100,000 hold for 12months and 1 day, sell…[Read more]

[^]I think it is only a matter of time (short) before Costello and Carmody put their heads together and take a long hard look at the number of people who are repeatedly selling PPR’s in any given time frame. I can see the Gov’t and ATO either legislating (gov’t) of issuing a ruling (ATO legislation by default) to put a time limit on PPRs ie. you…[Read more]

Thanks for the advice. I realise I have a lot (read huge) amount to learn. I’m finding this forum both informative and entertaining.

I hope in time to be posting the news of my first IP.

What do people think about JV’s. I have a number of friends and clients that are interested in forming a JV to invest in property. We have a builder,…[Read more]

Michael I wouldn’t be buying a property in a company….no CGT relief in a company. Purchase in a trust.

Sounds like you’ll be on your way quickly. Good luck, I’m sure you’ll do well.

Sorry been doing someone’s tax returns – yipee.

If you own the property and then basically rent it back to yourself I can see you having problems with the ATO.

Years ago you could buy your PPR in a company or trust structure and then rent it back yourself, but the ATO have cracked down on that. I would imagine that you’d have the same problem…[Read more]

So if your IP is owned in the trust and you want to rent it out to an unknown third party (arms length transaction) and your local authority allows you to do so…then I can’t see a problem.

Anyone else have some sage words of wisdom here???

So your structure is Company as corporate trustee for the Family trust.

Or

Michael Family Trust trading as ABC PTY Ltd

Have you already set this structure up. I’m in QLD so maybe things are different up here….just about everything is “different” up here.

This isn’t answering your question, however, most of my clients are structured like…[Read more]

1.5kms from Brisbane CBD – are you talking Spring Hill, New Farm sort of area.

Thats something you’d have to check with your local authorities I would imagine. When you say company trust….what exactly do you mean as a company is one thing and a trust is another.

Where in Brisbane. I’m on the Sunshine Coast….hilly and tourist ridden Maleny. I’d be interested in meeting like minded people. I’ve friends up here who are also interested in property…perhaps we could get a Sunshine Coast meeting together too???

Little Bee if you are renting both of these properties out then the cost of a Quantity Surveyors Report (Tax Depreciation Schedule) is deductible against the income being earnt.

Check that the company/professional you are using for these schedules is up to date with changes in the tax law. There was an Administrative Appeals case handed down by…[Read more]

There is obviously a lot of merit in the old saying

“Don’t do business with family”.

Good luck.

Kristine sorry to take so long to get back to you. Yes your accountant is correct. If you are a director of a company then your personal assets as a director of that company are up for grabs. Just ask the HIH guys!!!

You can protect your PPR with debt however.

Regards trusts and companies. Yes there are set up costs. A company will cost you…[Read more]

Hi Chris01. If you were just doing wraps with the property, I’d imagine that the purchaser would have that problem. I know of accountants who recommend that you purchase your “wrap” properties in a separate trust, so perhaps it is still your problem.

If anyone, Steve perhaps, has some better insight on this topic, I’d be interested to hear.

rx2_73, some accountants will hard sell the whole Trust scenario based on the “if” factor. IF you have an “uninvited guest” on your rental property and they fall off the balcony and break their necks – sue you for damages – you won’t be covered under your insurance….apparently “uninvited guests” aren’t covered under insurance. IF your property…[Read more]

To the best of my knowledge a trust, either discretionary or unit, still has the advantage of the 50% discount on capital items held for more than 12 months. Companies get no CGT relief ie. companies pay tax on the whole capital gain at 30%

Someone correct me if I am wrong because this is how accounting practices I have worked for are accounting…[Read more]

It’s my understanding that the reason you’d spread your loans between different banks is so that whenever you go asking for another loan the bank doesn’t have to revalue your entire portfolio of properties.

I may be entirely mistaken here, but it’s something I was told by a “property investing accountant” on the Sunshine Coast.

[][]Kristine a CGT event is shorthand for a “Capital Gains Tax” event. In its simpliest form a capital gain occurs when you sell a property for more than you paid for it. CGT doesn’t apply to your Principal Place of Residence (PPOR or PPR). It is a fairly complicated part of the Tax Act but you can read up about it on the ATO web site or in any…[Read more]

I wish I was pocketing $75 an hour. I’m an accountant doing tax and asset protection. My charge out rate is $120 per hour but I don’t see that much come back to me in my pay packet!!!!!

I agree with TerryW – be careful “interviewing” accountants because some of them will bill you for their time. As I mentioned in my previous post, we charge…[Read more]